In a recently unveiled autobiography, called Ithaki, the ex- premier Alexis Tsipras does not hold back as he reflects on that turbulent period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed that unorthodox academic Varoufakis to be his finance minister primarily due to his global profile and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had his own motives that involved promoting Varoufakis's publications and experimenting with his own theories using the nation rather than truly fighting for the country's economic stability.
He explained how the talks to stave off insolvency were “not just a method to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country found itself perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny and those punishing austerity policies required in return for rescue loans by foreign lenders.
Failed Options
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, an action which plunged the EU into deeper existential crisis.
Even though the vote was won resoundingly by those against the cuts, the prime minister was forced to ignore the result then agree to a bailout package with creditors that turned out to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After the minister proposed a backup strategy involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and delicate handling.”
He further claimed how his aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
