Within his newly released autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
In Tsipras's recollections, Tsipras appointed the maverick academic Varoufakis to be his treasury head largely due to the latter's international reputation and his very persuasive abilities as a speaker.
“He was, actually, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief possessed his own agenda that involved promoting Varoufakis's books and experimenting with his economic models using the nation instead of truly advocating the country's economic stability.
Tsipras explained that those talks to stave off insolvency were “not only a way to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came perilously on the brink of leaving the eurozone.
At stake lay both the country's future but also the severe austerity policies required in return for financial aid by international creditors.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, the harsh conditions were put to a popular referendum, an action which threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome then negotiate a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as distributing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, the author asserts that his former ally demonstrated himself “unfit for a deal that required complex and sensitive management.”
He further wrote how Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, and assisted hawks that were advocating Grexit.
This account of history has provoked fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
