In a newly released autobiography, called Ithaki, the former premier Alexis Tsipras does not hold back while he revisits the chaotic period of Greece's financial crisis.
An Unconventional Choice
As per Tsipras's account, he chose the maverick academic Varoufakis to be his finance minister primarily because of the latter's global profile and his very persuasive skills as a public orator.
“In reality, he was, in reality, more of a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had a personal agenda that included advancing his publications and experimenting with his own theories on the nation rather than truly fighting for the country's economic stability.
Tsipras noted that the discussions to avoid insolvency were “not just a method of achieving a better deal for the country. They became a test, a monumental opportunity to prove the truth of his theories.”
High-Stakes Negotiations
During tense discussions, the country found itself perilously on the brink of leaving the eurozone.
On the line lay both Greece's destiny but also those harsh austerity policies required in return for financial aid from foreign lenders.
Failed Options
Efforts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the harsh bailout terms were subjected to a public vote, an action which threw the EU into further existential crisis.
Although the vote was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and agree to a bailout package from creditors that turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy that included creating a parallel currency and issuing coupons to retirees, the leader knew it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
He further claimed how his confrontational style made him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
