Within his recently unveiled personal account, named Ithaki, the ex- premier Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's financial crisis.
A Controversial Appointment
In Tsipras's version, Tsipras chose the maverick economist Varoufakis as his finance minister primarily due to his global profile along with Varoufakis's “extremely attractive” skills as a communicator.
“He was, truthfully, more of a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own agenda that involved promoting Varoufakis's publications and testing out his own theories using Greece instead of truly advocating its financial survival.
He noted how the negotiations to avoid insolvency became “not just a method to secure improved terms for Greece. They became a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece found itself dangerously on the brink of exiting the eurozone.
On the line lay both Greece's destiny and the harsh austerity policies demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, a move that threw Europe into further existential crisis.
Although the referendum was won resoundingly by those against the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package with creditors that turned out to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal demanding complex and delicate handling.”
He further wrote how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for Grexit.
This account of history has been met with anger along with shock among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
