In a freshly published personal account, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that turbulent period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, Tsipras appointed the maverick academic Varoufakis to be his treasury head mainly because of his global profile along with his “extremely attractive” skills as a public orator.
“He was, actually, more like a personality rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis had his own agenda that involved advancing his publications and testing out his theories using the nation rather than truly fighting for its economic stability.
He wrote how those negotiations to prevent bankruptcy were “not only a way of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid tense discussions, the country came perilously on the brink of exiting the eurozone.
At stake was both Greece's future but also the harsh austerity policies demanded in return for rescue loans by international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a popular referendum, an action that threw the EU into a further existential crisis.
Even though the vote was carried decisively by those against austerity, Tsipras was forced but to reject its outcome then agree to a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, Tsipras knew it was the end questioning him: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
