Within his newly released personal account, titled Ithaki, the former premier Alexis Tsipras does not hold back as he examines the chaotic era during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras selected the unorthodox academic Varoufakis to be his treasury head largely because of his worldwide fame and his “extremely attractive” skills when it came to speaker.
“He was, in reality, more like a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges that Varoufakis had his own motives which included advancing his books and testing out his own economic models using Greece rather than truly fighting for the country's financial survival.
Tsipras wrote that the negotiations to prevent insolvency became “not just a way of achieving improved terms for Greece. They became a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
During tense discussions, Greece came perilously on the brink of exiting the single currency area.
At stake lay both the country's future but also the harsh austerity measures demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, an action that threw the EU into a deeper crisis of identity.
Even though the vote was carried decisively by voters against the cuts, the prime minister had little option but to reject its outcome and negotiate a bailout package from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This retelling of history has provoked anger and stunned disbelief in some quarters, while the former minister has kept a deafening silence regarding these claims.
