In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back as he revisits the turbulent period during Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, Tsipras appointed the unorthodox academic Varoufakis to be his finance minister primarily due to his global profile along with his highly compelling skills when it came to public orator.
“In reality, he was, truthfully, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief had his own agenda that included advancing his books as well as testing out his game theories on the nation instead of truly fighting for its economic stability.
He wrote that those talks to stave off insolvency were “not only a way of achieving improved terms for the country. They became a test, an historic chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny but also those harsh austerity policies demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, an action that plunged Europe into further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced but to ignore the result and negotiate a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hawks who were pushing for Grexit.
This retelling of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
