In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's account, Tsipras appointed the unorthodox academic Varoufakis as the treasury head primarily because of his international reputation and his “extremely attractive” skills as a public orator.
“He was, truthfully, more like a personality rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief possessed his own agenda that included advancing his books as well as experimenting with his own game theories on Greece rather than truly advocating its financial survival.
Tsipras noted how the talks to avoid bankruptcy became “not only a method of achieving improved terms for the country. They became a test, a monumental chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously on the brink of exiting the eurozone.
At stake lay both the country's future and those harsh austerity measures demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those excoriating conditions were subjected to a public vote, an action which plunged the EU into further existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a bailout package with creditors that proved to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras concludes how his former ally demonstrated himself “unsuitable for a deal that required intricate and sensitive management.”
Tsipras further claimed how his aggressive style made him more and more alone among peers, endangered the country, and helped hardliners that were pushing for Grexit.
The account of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
