In a recently unveiled autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's version, Tsipras chose the unorthodox economist Varoufakis as his treasury head mainly due to his worldwide fame along with his very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims how Varoufakis had his own agenda that involved promoting Varoufakis's books and testing out his economic models using the nation rather than truly advocating its financial survival.
Tsipras noted that those talks to avoid insolvency became “not only a way of achieving a better deal for Greece. They were a test, a monumental chance to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country found itself perilously close to leaving the eurozone.
At stake lay not only the country's destiny but also the harsh austerity policies required in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those harsh bailout terms were subjected to a public vote, an action that threw the EU into a further existential crisis.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image 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 the minister outlined a contingency plan that included establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate management.”
Tsipras also claimed how Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, while helped hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
