Within his freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back while he examines that turbulent era of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's version, Tsipras appointed the maverick economist Varoufakis as the treasury head mainly because of the latter's international reputation and his “extremely attractive” skills when it came to communicator.
“He was, in reality, more like a celebrity and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had a personal motives which involved advancing Varoufakis's books as well as experimenting with his own game theories using Greece rather than truly advocating its economic stability.
Tsipras explained that the negotiations to avoid insolvency became “not just a method to secure improved terms for Greece. They became an experiment, an historic chance to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came dangerously close to exiting the eurozone.
On the line lay not only the country's future and the severe austerity measures demanded in return for rescue loans by international creditors.
Failed Options
Efforts to secure funds from other sources, including an urgent plea to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum and Reversal
In July 2015, those harsh conditions were put to a popular referendum, a move that threw Europe into a further existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result and agree to a rescue deal from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and distributing vouchers to pensioners, the leader knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts that Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote that his aggressive approach left him more and more alone with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
