In a newly released memoir, named Ithaki, the former premier Alexis Tsipras spares no criticism as he revisits the turbulent era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, he selected that unorthodox academic Varoufakis as his treasury head primarily because of the latter's worldwide fame along with Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a celebrity rather than an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader claims how his finance chief possessed a personal motives which involved advancing his publications as well as experimenting with his economic models using the nation rather than truly advocating its financial survival.
He wrote how those talks to avoid bankruptcy became “not only a way of achieving a better deal for the country. They became an experiment, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came perilously on the brink of exiting the single currency area.
At stake was both Greece's destiny but also those harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, an action that threw Europe into further existential crisis.
Although the vote was carried decisively by voters who opposed austerity, Tsipras was forced but to ignore the result and negotiate a rescue deal from creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis proposed a contingency plan that included creating a secondary currency and distributing vouchers to pensioners, Tsipras said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive management.”
He further wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for Grexit.
This account of events has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
