Within his freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that turbulent period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he selected the maverick academic Varoufakis as the treasury head mainly because of the latter's worldwide fame along with his very persuasive skills as a speaker.
“He was, actually, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that his finance chief possessed his own agenda which included promoting Varoufakis's books as well as experimenting with his own theories on the nation rather than genuinely advocating its financial survival.
He wrote that the discussions to avoid insolvency were “not just a method to secure improved terms for Greece. They became a test, an historic opportunity to prove the truth of his ideas.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously close to leaving the eurozone.
At stake was not only the country's destiny but also those harsh austerity policies demanded in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move which threw Europe into a deeper crisis of identity.
Even though the vote was carried decisively by those against the cuts, the prime minister was forced but to ignore the result then negotiate a bailout package with foreign lenders which proved to be tougher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive approach left him more and more alone among peers, endangered the country, and assisted hawks that were pushing for Grexit.
The retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
