In a freshly published autobiography, named Ithaki, the former leader Alexis Tsipras spares no criticism as he revisits the chaotic era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras selected the maverick economist Varoufakis as the treasury head largely because of the latter's global profile along with his highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a personality and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed a personal agenda that included advancing his books and testing out his own economic models on the nation instead of truly fighting for the country's financial survival.
He wrote that the talks to avoid insolvency became “not just a method to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of his theories.”
High-Stakes Talks
During volatile negotiations, the country found itself dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also those severe austerity policies required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, an action which threw the EU into a deeper existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy that included creating a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes how his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive management.”
He further wrote that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has been met with fury and shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
