Within his recently unveiled memoir, named Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, Tsipras selected the maverick economist Varoufakis to be the finance minister mainly due to his international reputation along with Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, in reality, more of a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief possessed his own agenda which included advancing his books as well as experimenting with his own game theories using Greece rather than truly advocating the country's financial survival.
He wrote that the discussions to avoid bankruptcy became “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny and those severe austerity measures required in exchange for bailout funds from international creditors.
Failed Options
Attempts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action which threw the EU into a deeper existential crisis.
Even though the vote was won resoundingly by voters against austerity, the prime minister had little option to reject its outcome and agree to a bailout package with creditors that turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, the author concludes that Varoufakis had proved himself “unfit for a deal that required complex and sensitive management.”
Tsipras further wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
The retelling of events has been met with fury along with stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
