In a newly released autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the turbulent period of Greece's financial crisis.
An Unconventional Choice
As per Tsipras's version, he chose that unorthodox academic Varoufakis to be his treasury head primarily because of the latter's global profile and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges that his finance chief possessed his own motives which involved advancing his publications as well as experimenting with his own theories on Greece instead of truly advocating the country's economic stability.
He noted that the discussions to avoid bankruptcy became “not only a way to secure a better deal for the country. They became an experiment, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself perilously on the brink of leaving the single currency area.
On the line lay not only Greece's future but also the punishing cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a public vote, a move that plunged Europe into a further crisis of identity.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras was forced but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency and distributing coupons to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and delicate handling.”
He further claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has provoked anger and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
