Within his newly released autobiography, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he reflects on the turbulent era of Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis to be the finance minister largely due to his international reputation along with his “extremely attractive” skills as a public orator.
“He was, truthfully, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed a personal agenda that involved promoting Varoufakis's publications as well as testing out his economic models on Greece rather than truly advocating its financial survival.
He noted that those talks to prevent insolvency became “not just a way of achieving improved terms for Greece. They became an experiment, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, the country found itself perilously close to leaving the eurozone.
At stake was both the country's destiny but also those severe cutbacks required in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those punitive conditions were put to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was won decisively by those who opposed the cuts, Tsipras had little option to ignore the result and negotiate a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes how his former ally demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
He also claimed that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with fury and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
