In a newly released autobiography, titled Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that chaotic period of Greece's debt drama.
A Controversial Choice
According to Tsipras's recollections, he selected the maverick academic Varoufakis to be his treasury head largely due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief had his own agenda which included promoting his publications as well as testing out his economic models using Greece rather than truly fighting for the country's financial survival.
He wrote how the discussions to stave off insolvency became “not only a way to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, Greece came perilously close to exiting the single currency area.
On the line lay both the country's future and those harsh austerity policies required in return for financial aid from foreign lenders.
Failed Options
Efforts to secure funds from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Assisting Greece would be tantamount to throwing money into the garbage, Putin reportedly informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those harsh conditions were subjected to a public vote, an action that plunged Europe into further existential crisis.
Although the vote was carried decisively by those who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a bailout package with creditors which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the front pages of publications globally … it seemed he relished the spotlight.”
After the minister proposed a backup strategy that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author asserts how his former ally had proved himself to be “unfit for an agreement demanding complex and delicate management.”
He further wrote how his confrontational style left him more and more alone among peers, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked anger along with stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
