Within his freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on the turbulent period of Greece's debt drama.
A Controversial Appointment
In Tsipras's version, he appointed the maverick academic Varoufakis to be the treasury head largely because of his global profile and his “extremely attractive” abilities as a public orator.
“In reality, he was, actually, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how his finance chief had his own agenda which involved advancing Varoufakis's publications as well as testing out his own theories on the nation rather than truly advocating the country's economic stability.
Tsipras wrote that the talks to stave off bankruptcy were “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself perilously close to leaving the eurozone.
At stake lay both Greece's destiny and the harsh austerity measures demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, a move that threw the EU into a further existential crisis.
Although the vote was carried decisively by those against austerity, Tsipras was forced but to ignore the result and negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis had proved himself “unfit for a deal that required intricate and sensitive handling.”
Tsipras also wrote that his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with anger and shock in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
