In a recently unveiled autobiography, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, he chose the maverick academic Varoufakis to be his treasury head mainly due to the latter's global profile and his very persuasive abilities as a communicator.
“He was, in reality, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how his finance chief had a personal agenda which included advancing Varoufakis's publications and testing out his own theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained that the talks to prevent bankruptcy were “not only a way of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile discussions, the country found itself perilously close to leaving the single currency area.
On the line lay both Greece's future but also the punishing austerity policies required in return for rescue loans from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those harsh conditions were put to a public vote, a move that threw Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by those against austerity, the prime minister had little option to ignore the result and negotiate a rescue deal from creditors which turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to pensioners, the leader said he realised it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes how Varoufakis had proved himself “unfit for a deal that required complex and delicate handling.”
Tsipras further wrote how his aggressive approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating Grexit.
The retelling of events has been met with anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
