In a recently unveiled personal account, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on that chaotic era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, Tsipras chose the unorthodox economist Varoufakis as the treasury head largely due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills when it came to speaker.
“He was, actually, more of a personality rather than an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief had his own agenda that included advancing his books as well as experimenting with his theories on the nation rather than truly fighting for its financial survival.
He wrote that those negotiations to avoid bankruptcy were “not only a method of achieving improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, the country found itself perilously close to leaving the single currency area.
At stake was not only Greece's destiny and the harsh austerity policies required in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the harsh conditions were put to a public vote, an action which plunged Europe into a further existential crisis.
Although the referendum was carried resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal from foreign lenders which turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate handling.”
He further claimed how his aggressive approach left him more and more alone among peers, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
