Within his recently unveiled autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's version, Tsipras appointed the unorthodox economist Varoufakis to be his treasury head largely due to the latter's global profile along with his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more like a star and less of an economist,” stated Tsipras.
Conflicting Priorities
Tsipras alleges how his finance chief had his own agenda that involved advancing his books and experimenting with his own economic models using Greece rather than genuinely advocating its financial survival.
Tsipras explained that the negotiations to stave off insolvency were “not only a method of achieving improved terms for the country. They became a test, an historic opportunity to prove the truth of his theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously on the brink of leaving the eurozone.
On the line lay not only Greece's destiny but also those punishing austerity measures required in exchange for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the harsh conditions were subjected to a public vote, an action that plunged the EU into deeper crisis of identity.
Although the vote was carried resoundingly by voters against the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate management.”
He also wrote that his confrontational approach made him more and more alone among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
This account of events has provoked fury and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence on the matter.
