Within his freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back while he examines that chaotic period during Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, he appointed that maverick academic Varoufakis to be his finance minister mainly due to the latter's global profile along with Varoufakis's highly compelling abilities as a communicator.
“He was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis had his own motives that involved promoting his publications and experimenting with his own game theories on Greece instead of genuinely advocating the country's economic stability.
Tsipras noted that the talks to stave off bankruptcy became “not just a way to secure a better deal for Greece. They became a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously on the brink of exiting the single currency area.
At stake was both Greece's future and the punishing cutbacks required in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to find funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
That summer, those harsh bailout terms were put to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, the prime minister was forced to ignore the result and agree to a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that his former ally had proved himself “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The account of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
