In a recently unveiled autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed the maverick economist Varoufakis to be the finance minister primarily because of the latter's international reputation along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own agenda which included advancing Varoufakis's publications as well as experimenting with his economic models using Greece rather than genuinely advocating its economic stability.
Tsipras wrote how those talks to prevent bankruptcy were “not only a way to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
On the line lay not only the country's future but also those severe austerity policies required in return for financial aid by international creditors.
Failed Options
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the vote was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, the leader said he realised that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive handling.”
He further claimed that his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were pushing for Grexit.
The retelling of events has been met with anger along with shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
