Within his recently unveiled autobiography, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the chaotic era of Greece's economic turmoil.
A Controversial Choice
In Tsipras's account, Tsipras selected that maverick academic Varoufakis as his treasury head largely because of his global profile and his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief possessed a personal agenda which included advancing his books and experimenting with his own economic models using Greece instead of genuinely fighting for its economic stability.
He wrote that those negotiations to prevent bankruptcy became “not just a method of achieving improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country came perilously close to leaving the eurozone.
At stake was both Greece's destiny but also the punishing austerity measures demanded in exchange for financial aid from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, a move that plunged Europe into further existential crisis.
Although the referendum was carried decisively by those against the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
After the minister proposed a contingency plan that included creating a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive management.”
He also claimed that Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
