In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he examines that chaotic era of Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, Tsipras chose the unorthodox academic Varoufakis as the finance minister largely because of his worldwide fame and his highly compelling skills as a communicator.
“In reality, he was, truthfully, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims that Varoufakis had his own agenda that included promoting his books as well as experimenting with his theories on Greece instead of genuinely advocating its economic stability.
Tsipras wrote how the negotiations to prevent insolvency were “not just a way to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster negotiations, Greece found itself dangerously close to leaving the eurozone.
At stake lay not only the country's destiny but also the punishing austerity policies demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh conditions were subjected to a public vote, a move which threw the EU into deeper existential crisis.
Even though the referendum was carried decisively by voters who opposed austerity, the prime minister had little option to reject its outcome then agree to a bailout package with foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
After the minister proposed a backup strategy involving creating a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
Tsipras further claimed how Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating Grexit.
This account of history has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
