Within his freshly published autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, he chose the maverick economist Varoufakis to be the finance minister primarily due to his worldwide fame and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief had a personal motives which involved advancing his books as well as testing out his economic models on Greece instead of genuinely fighting for its financial survival.
He wrote that the discussions to stave off insolvency were “not only a way to secure a better deal for Greece. They became an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny but also those severe austerity policies required in return for financial aid from international creditors.
Failed Alternatives
Attempts to secure financing from other sources, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh bailout terms were put to a public vote, an action which threw the EU into further crisis of identity.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result then negotiate a bailout package from creditors which proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with anger and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
