Within his recently unveiled autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he examines that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, he appointed that maverick academic Varoufakis to be the finance minister largely because of the latter's global profile along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, truthfully, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed a personal agenda that included promoting Varoufakis's publications as well as experimenting with his own theories using the nation rather than truly fighting for the country's economic stability.
He wrote how the negotiations to prevent bankruptcy were “not only a method to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Talks
During volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake was not only Greece's future and those punishing austerity policies demanded in exchange for bailout funds from foreign lenders.
Failed Options
Efforts to find funds elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, a move that threw Europe into a deeper crisis of identity.
Although the referendum was carried decisively by voters against austerity, the prime minister had little option to reject its outcome then agree to a bailout package with foreign lenders which proved to be more severe.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes that his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational style made him more and more alone with colleagues, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and shock in some quarters, whereas the former minister has maintained a deafening silence on the matter.
