In a freshly published autobiography, called Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he selected the maverick economist Varoufakis to be the finance minister largely due to his worldwide fame and Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges that Varoufakis possessed his own agenda that involved promoting his books as well as experimenting with his theories using Greece instead of truly advocating the country's economic stability.
Tsipras wrote how the negotiations to stave off insolvency were “not only a method of achieving improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During rollercoaster negotiations, the country came dangerously close to leaving the single currency area.
At stake was not only Greece's destiny and those harsh cutbacks demanded in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the harsh conditions were put to a public vote, a move that threw the EU into a deeper existential crisis.
Even though the vote was won decisively by voters against austerity, Tsipras was forced but to ignore the result and agree to a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and issuing vouchers to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
He also claimed how his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
