Within his newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he examines that chaotic period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's recollections, Tsipras chose the unorthodox economist Varoufakis to be the finance minister mainly due to his worldwide fame along with Varoufakis's very persuasive abilities as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief possessed his own agenda that included promoting his publications and experimenting with his own economic models using Greece instead of truly fighting for its economic stability.
Tsipras explained how those negotiations to avoid insolvency became “not only a way to secure a better deal for Greece. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, the country came dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny but also those harsh austerity policies required in exchange for rescue loans from international creditors.
Failed Options
Efforts to secure funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were put to a public vote, a move that threw the EU into deeper existential crisis.
Although the vote was carried resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and agree to a bailout package from creditors that proved to be more severe.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, the leader said he realised it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras also wrote that Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury along with shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
