Within his recently unveiled autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he reflects on the chaotic period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, he selected that maverick economist Varoufakis as his treasury head largely due to the latter's global profile along with his “extremely attractive” abilities as a speaker.
“He was, in reality, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed his own agenda that involved promoting his books and testing out his own theories using the nation instead of genuinely advocating the country's financial survival.
Tsipras wrote how the negotiations to prevent insolvency were “not just a method of achieving improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line was not only the country's future but also those punishing austerity policies demanded in return for bailout funds by international creditors.
Failed Options
Efforts to secure funds from other sources, such as a desperate plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the excoriating conditions were put to a popular referendum, an action that plunged the EU into a further existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and distributing coupons to pensioners, the leader said he realised it was the end questioning him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that his former ally had proved himself “unsuitable for an agreement that required complex and delicate handling.”
He further wrote how Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
This account of events has provoked fury and shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
