In a newly released autobiography, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's debt drama.
A Controversial Choice
According to Tsipras's account, Tsipras chose the maverick economist Varoufakis as the finance minister largely because of his international reputation along with Varoufakis's very persuasive abilities when it came to speaker.
“He was, actually, more like a personality rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that Varoufakis had a personal motives that included advancing Varoufakis's publications and experimenting with his own game theories using the nation instead of genuinely fighting for its economic stability.
He wrote that those talks to stave off insolvency were “not just a method to secure improved terms for Greece. They became a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny but also the punishing austerity measures demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were put to a public vote, an action that plunged the EU into a further existential crisis.
Even though the referendum was won decisively by those who opposed austerity, the prime minister was forced but to ignore the result and agree to a bailout package from creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan involving establishing a secondary currency and distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal that required complex and sensitive handling.”
Tsipras further claimed that his confrontational approach made him more and more alone among peers, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
