In a freshly published personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that turbulent period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, he selected the unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation and Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, actually, more of a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims how Varoufakis had a personal agenda that involved advancing his books and experimenting with his game theories using the nation instead of genuinely advocating its economic stability.
Tsipras wrote that the discussions to avoid insolvency were “not only a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense discussions, Greece came perilously on the brink of leaving the single currency area.
At stake was not only the country's destiny but also those severe austerity measures required in exchange for financial aid by foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, an action which threw Europe into further crisis of identity.
Even though the referendum was won decisively by voters who opposed austerity, Tsipras had little option but to ignore the result and agree to a bailout package from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, the author concludes that his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”
He further claimed that Varoufakis's confrontational style made him more and more alone with colleagues, put Greece at risk, and assisted hawks who were pushing for Grexit.
This retelling of events has provoked anger along with stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
