In a newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that turbulent period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, he selected that unorthodox academic Varoufakis to be the treasury head mainly due to his global profile along with his very persuasive abilities when it came to communicator.
“He was, truthfully, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis had a personal agenda that included advancing Varoufakis's books and testing out his own game theories using Greece rather than genuinely advocating its economic stability.
He noted how the negotiations to prevent bankruptcy became “not just a method to secure improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to leaving the single currency area.
On the line lay not only the country's destiny and the punishing austerity policies demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive conditions were put to a popular referendum, a move that plunged the EU into further existential crisis.
Although the referendum was won resoundingly by voters against the cuts, Tsipras had little option to reject its outcome and agree to a bailout package with foreign lenders that proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
After the minister proposed a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, the leader knew it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and delicate handling.”
He also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury and shock among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
