In a freshly published autobiography, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines that chaotic era during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's version, he chose that unorthodox economist Varoufakis as his treasury head largely due to the latter's international reputation and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more like a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief had a personal motives that included advancing Varoufakis's books and testing out his game theories on the nation rather than truly fighting for its financial survival.
He wrote how those negotiations to prevent bankruptcy were “not just a way to secure a better deal for Greece. They were a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During tense discussions, the country came perilously close to exiting the single currency area.
At stake was not only the country's future and the harsh austerity measures demanded in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, a move that threw the EU into a further crisis of identity.
Although the vote was won decisively by voters against austerity, Tsipras had little option to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, the leader said he realised it was game over questioning him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras also wrote that his confrontational approach made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This account of events has been met with fury and shock in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
