Within his recently unveiled autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's account, he appointed the unorthodox economist Varoufakis as the finance minister primarily due to the latter's worldwide fame along with Varoufakis's very persuasive skills as a public orator.
“He was, truthfully, more of a star and less of an economist,” stated Tsipras.
Conflicting Priorities
Tsipras alleges how his finance chief had his own agenda which included promoting Varoufakis's publications as well as experimenting with his own theories using Greece rather than genuinely advocating the country's economic stability.
He noted that those discussions to prevent insolvency became “not just a way to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself perilously on the brink of leaving the eurozone.
On the line lay not only Greece's destiny but also the punishing austerity measures required in return for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, those excoriating bailout terms were subjected to a public vote, a move that plunged the EU into deeper crisis of identity.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome and agree to a bailout package from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement that required intricate and delicate management.”
Tsipras also wrote that Varoufakis's confrontational style made him more and more alone with colleagues, put Greece at risk, and assisted hawks who were advocating Grexit.
This account of history has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
