In a recently unveiled autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on the turbulent period during Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, Tsipras chose that maverick economist Varoufakis as his treasury head primarily because of his international reputation along with his very persuasive abilities as a communicator.
“He was, in reality, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had his own motives that included promoting his publications and testing out his economic models on Greece instead of genuinely fighting for its economic stability.
Tsipras noted that those discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They became a test, a monumental chance to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
At stake lay both the country's future but also the severe austerity policies demanded in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were put to a public vote, a move which threw the EU into a further crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, Tsipras had little option to reject its outcome and negotiate a rescue deal from creditors that proved to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency and distributing coupons to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, the author concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and sensitive handling.”
He also wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
The account of events has provoked fury along with shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
