In a freshly published memoir, named Ithaki, the ex- premier Alexis Tsipras does not hold back while he examines that turbulent era of Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, Tsipras selected the maverick economist Varoufakis to be the treasury head primarily because of his international reputation and Varoufakis's “extremely attractive” abilities when it came to communicator.
“In reality, he was, truthfully, more like a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief possessed a personal agenda that involved promoting his publications and experimenting with his own game theories on Greece rather than truly fighting for the country's economic stability.
He explained that those negotiations to avoid bankruptcy were “not only a way of achieving a better deal for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid volatile negotiations, the country came dangerously close to exiting the single currency area.
On the line was not only the country's destiny and the punishing austerity measures required in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those excoriating conditions were subjected to a public vote, an action that threw the EU into deeper crisis of identity.
Although the referendum was carried resoundingly by those against the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal from creditors that turned out to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also wrote that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has been met with fury and stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
