Within his recently unveiled autobiography, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he revisits that chaotic period of Greece's debt drama.
A Controversial Choice
In Tsipras's account, he appointed that maverick economist Varoufakis to be the treasury head primarily because of his worldwide fame along with Varoufakis's very persuasive skills when it came to communicator.
“He was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader suggests how Varoufakis had a personal motives that included advancing his books and experimenting with his theories using Greece rather than truly advocating the country's economic stability.
Tsipras explained how the negotiations to avoid insolvency became “not only a method to secure a better deal for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also the severe austerity policies required in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, those harsh conditions were subjected to a public vote, a move which plunged the EU into a further crisis of identity.
Although the referendum was won resoundingly by those against the cuts, Tsipras had little option to reject its outcome and agree to a bailout package with foreign lenders which turned out to be more severe.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author concludes how his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
He also wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked anger along with stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
