Within his freshly published autobiography, named Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras selected the maverick academic Varoufakis to be his treasury head largely due to his global profile and his very persuasive skills when it came to speaker.
“In reality, he was, actually, more like a celebrity and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief possessed a personal agenda that involved advancing his publications and testing out his theories using Greece rather than truly advocating the country's economic stability.
Tsipras wrote that the negotiations to avoid insolvency became “not only a method to secure improved terms for Greece. They were an experiment, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's future but also those harsh austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, a move that threw the EU into a further existential crisis.
Even though the vote was won resoundingly by voters against the cuts, the prime minister was forced but to reject its outcome and negotiate a rescue deal from creditors which turned out to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning him: “Are you serious?”
Lasting Rebuke
In the book, the author concludes that Varoufakis had proved himself “unfit for a deal demanding complex and sensitive handling.”
He further claimed that Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
This account of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
