Within his newly released autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's account, Tsipras chose the unorthodox economist Varoufakis as his treasury head primarily due to the latter's worldwide fame and his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis had his own agenda which included promoting his books as well as testing out his economic models on Greece instead of genuinely fighting for its economic stability.
He explained how the negotiations to prevent insolvency were “not only a method to secure a better deal for the country. They became a test, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country came dangerously on the brink of leaving the single currency area.
On the line was not only Greece's future but also those severe cutbacks required in exchange for financial aid from international creditors.
Failed Options
Attempts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move that plunged the EU into further crisis of identity.
Although the referendum was carried resoundingly by those against austerity, the prime minister had little option but to ignore the result then agree to a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to pensioners, the leader said he realised that it was the end questioning him: “Is this for real?”
Lasting Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unfit for an agreement that required intricate and delicate handling.”
Tsipras also wrote that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
