In a freshly published autobiography, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that chaotic period of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras chose the maverick economist Varoufakis to be his finance minister largely due to his international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, actually, more of a star and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis had a personal motives that included advancing his publications as well as testing out his own game theories using the nation instead of truly advocating the country's financial survival.
Tsipras explained that those negotiations to avoid bankruptcy were “not only a method of achieving improved terms for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
During volatile negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was not only Greece's future and those harsh austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the harsh bailout terms were subjected to a public vote, a move that threw Europe into a deeper crisis of identity.
Although the vote was won resoundingly by voters against austerity, the prime minister had little option to reject its outcome then agree to a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally had proved himself to be “unfit for an agreement that required intricate and sensitive management.”
He further wrote how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
This account of events has provoked fury and shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
