Within his recently unveiled autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's version, Tsipras selected the unorthodox economist Varoufakis as his finance minister mainly because of the latter's international reputation and his highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had a personal motives that included advancing Varoufakis's books as well as experimenting with his own theories using Greece instead of genuinely fighting for its economic stability.
He wrote that the negotiations to stave off insolvency became “not only a way to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself perilously close to exiting the eurozone.
On the line lay both Greece's future and the severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Attempts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option to ignore the result then negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis had proved himself “unfit for a deal that required intricate and delicate handling.”
He further wrote how his confrontational approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks who were pushing for Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
