In a recently unveiled autobiography, called Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, Tsipras chose that unorthodox economist Varoufakis as his treasury head mainly because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief possessed his own agenda which included advancing Varoufakis's publications and testing out his economic models using the nation instead of genuinely advocating its financial survival.
He noted that the discussions to prevent bankruptcy were “not only a way of achieving improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, Greece came dangerously close to leaving the eurozone.
On the line was not only Greece's future and those harsh austerity policies required in return for financial aid from international creditors.
Failed Options
Attempts to find financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were subjected to a public vote, a move which plunged the EU into a further crisis of identity.
Although the vote was carried resoundingly by voters against austerity, Tsipras was forced but to ignore the result and negotiate a bailout package with foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the covers of magazines the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts how his former ally had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational approach left him more and more alone among peers, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief among certain groups, while the former minister has kept a deafening silence on the matter.
