Within his recently unveiled autobiography, called Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent period during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's version, he appointed that unorthodox economist Varoufakis to be his treasury head primarily due to his international reputation and Varoufakis's very persuasive abilities as a public orator.
“He was, in reality, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests that Varoufakis had a personal agenda which included advancing his books and experimenting with his own game theories using the nation rather than truly advocating the country's financial survival.
Tsipras wrote that those talks to stave off bankruptcy were “not only a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid volatile negotiations, the country found itself perilously on the brink of exiting the single currency area.
At stake lay not only Greece's destiny and the punishing cutbacks required in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to ignore the result then agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, the author asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and delicate handling.”
He further claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked fury along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
