In a freshly published autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's recollections, he appointed that maverick academic Varoufakis to be his treasury head mainly due to the latter's worldwide fame along with Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief had a personal agenda that involved promoting his books as well as experimenting with his own theories using the nation rather than truly fighting for its financial survival.
He wrote how those negotiations to avoid bankruptcy became “not just a way to secure a better deal for Greece. They became a test, an historic opportunity to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid volatile discussions, the country came perilously on the brink of exiting the eurozone.
On the line was both Greece's destiny and those harsh austerity policies demanded in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a popular referendum, an action that threw Europe into deeper existential crisis.
Even though the referendum was won resoundingly by voters who opposed austerity, Tsipras had little option to reject its outcome and agree to a rescue deal from foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
When the minister outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, the leader knew that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
