Within his newly released autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on the chaotic era during Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, he appointed the maverick economist Varoufakis as the treasury head mainly due to his global profile and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more like a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had his own agenda which involved promoting Varoufakis's publications and experimenting with his theories using Greece instead of genuinely advocating the country's financial survival.
He wrote that those discussions to avoid insolvency became “not only a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of his theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was both Greece's destiny and those harsh austerity measures required in return for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
That summer, the punitive conditions were subjected to a popular referendum, a move that plunged Europe into deeper existential crisis.
Although the referendum was won decisively by voters against austerity, the prime minister was forced to reject its outcome then agree to a rescue deal from foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included creating a parallel currency as well as issuing coupons to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes that his former ally had proved himself “unfit for a deal that required complex and delicate handling.”
Tsipras also claimed that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
This retelling of events has provoked anger and shock in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
