In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on that turbulent period of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras chose the maverick economist Varoufakis as the finance minister largely because of his worldwide fame along with Varoufakis's highly compelling abilities when it came to speaker.
“He was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had a personal agenda that involved advancing his publications and testing out his game theories using Greece rather than truly fighting for the country's financial survival.
Tsipras wrote that those talks to prevent insolvency became “not just a method to secure a better deal for the country. They were a test, a monumental chance to demonstrate the truth of his ideas.”
Critical Negotiations
Amid volatile discussions, Greece came perilously close to leaving the single currency area.
On the line was not only Greece's future and those harsh cutbacks demanded in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were put to a popular referendum, an action which plunged the EU into further existential crisis.
Although the vote was carried decisively by voters against austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts how his former ally demonstrated himself “unfit for a deal that required complex and delicate management.”
Tsipras further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The account of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
