In a newly released autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Appointment
In Tsipras's recollections, he appointed the unorthodox economist Varoufakis as his finance minister primarily because of his worldwide fame along with his highly compelling skills when it came to speaker.
“He was, in reality, more like a personality rather than an economist,” stated the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief had his own agenda which involved advancing Varoufakis's books as well as experimenting with his economic models using Greece rather than genuinely advocating the country's economic stability.
He wrote how the talks to stave off insolvency were “not just a method of achieving a better deal for the country. They became an experiment, a monumental chance to prove the truth of his theories.”
High-Stakes Talks
During rollercoaster discussions, the country came dangerously on the brink of exiting the single currency area.
At stake lay both the country's destiny but also those punishing austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the punitive conditions were subjected to a public vote, an action which plunged Europe into a further crisis of identity.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras was forced but to ignore the result then agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew it was game over and asked him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with anger along with shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
