In a freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras spares no criticism while he reflects on that turbulent era during Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's version, he appointed the maverick economist Varoufakis as his finance minister largely because of his global profile and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Priorities
The former leader claims how Varoufakis had a personal motives that involved promoting his publications and testing out his own theories using the nation instead of genuinely fighting for its financial survival.
Tsipras noted that the talks to stave off insolvency became “not only a way to secure improved terms for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to exiting the single currency area.
On the line was not only the country's future but also the severe austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, the excoriating conditions were subjected to a popular referendum, a move that threw the EU into a deeper existential crisis.
Even though the referendum was carried decisively by those against the cuts, the prime minister was forced to reject its outcome then agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was game over and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts how his former ally demonstrated himself “unfit for an agreement that required complex and sensitive management.”
He further wrote that Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The account of history has been met with fury and shock in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
