In a recently unveiled autobiography, named Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, he chose the maverick academic Varoufakis as his finance minister largely because of his international reputation along with his very persuasive abilities as a communicator.
“He was, in reality, more like a star and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had his own agenda that included advancing Varoufakis's publications as well as experimenting with his theories using the nation rather than genuinely fighting for the country's financial survival.
Tsipras wrote how those negotiations to stave off bankruptcy became “not only a method to secure a better deal for the country. They became a test, a monumental chance to demonstrate the validity of his ideas.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously on the brink of leaving the single currency area.
On the line was not only Greece's future but also those severe cutbacks demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the punitive conditions were put to a popular referendum, an action that plunged the EU into a further existential crisis.
Even though the vote was carried resoundingly by those against austerity, the prime minister had little option but to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and delicate handling.”
He further wrote that his aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The account of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
