In a freshly published autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed that maverick economist Varoufakis as the treasury head mainly due to the latter's international reputation and Varoufakis's very persuasive skills when it came to public orator.
“In reality, he was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had a personal motives which involved advancing Varoufakis's books and experimenting with his theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras noted that those talks to avoid insolvency became “not only a method of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the validity of his ideas.”
High-Stakes Talks
During rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
At stake lay not only Greece's future and those harsh austerity measures demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those punitive conditions were subjected to a public vote, a move that threw the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced to ignore the result then agree to a rescue deal with creditors that proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, the leader knew that it was the end questioning him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes how his former ally had proved himself “unsuitable for a deal that required intricate and sensitive management.”
He also wrote that his aggressive approach left him more and more alone among peers, put Greece at risk, while assisted hawks who were advocating Grexit.
The retelling of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
