In a freshly published personal account, titled Ithaki, the former prime minister Alexis Tsipras does not hold back while he revisits the turbulent period during Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's version, he appointed that unorthodox academic Varoufakis as his finance minister primarily because of his international reputation and his very persuasive skills when it came to communicator.
“He was, actually, more of a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that his finance chief possessed his own motives that included promoting Varoufakis's books and testing out his theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras wrote how those talks to avoid bankruptcy were “not just a way of achieving improved terms for Greece. They were an experiment, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of leaving the eurozone.
At stake was not only Greece's destiny but also those punishing austerity measures required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, an action that threw Europe into further existential crisis.
Although the vote was won resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result then agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, Tsipras knew it was game over questioning him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury along with shock in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
