In a freshly published autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits the chaotic period during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose that maverick academic Varoufakis to be his treasury head largely due to the latter's global profile and his very persuasive abilities when it came to communicator.
“He was, actually, more like a star and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis had his own agenda which involved advancing Varoufakis's publications and testing out his game theories on Greece instead of genuinely fighting for its financial survival.
Tsipras wrote how the discussions to stave off insolvency were “not only a method of achieving improved terms for the country. They became a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of leaving the eurozone.
At stake was both Greece's future but also the harsh austerity measures demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a popular referendum, a move which plunged Europe into a deeper existential crisis.
Although the referendum was carried resoundingly by voters against austerity, Tsipras had little option to reject its outcome and agree to a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who drew publicity, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as issuing coupons to pensioners, the leader said he realised it was the end questioning him: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate management.”
He further wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were pushing for Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
