Within his recently unveiled memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he examines the turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he chose the unorthodox economist Varoufakis to be the treasury head mainly because of the latter's worldwide fame and his “extremely attractive” skills when it came to speaker.
“In reality, he was, truthfully, more like a star and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis possessed his own agenda which included advancing Varoufakis's publications and experimenting with his own theories on Greece rather than genuinely fighting for the country's economic stability.
He wrote that the negotiations to stave off insolvency were “not just a method to secure a better deal for Greece. They became a test, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid volatile discussions, the country found itself perilously close to leaving the single currency area.
On the line was not only the country's future and those harsh austerity policies required in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive conditions were put to a public vote, an action which threw Europe into a further existential crisis.
Even though the referendum was carried resoundingly by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, while assisted hardliners that were advocating Grexit.
This account of events has been met with fury along with stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
