In a newly released autobiography, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's version, he selected that unorthodox academic Varoufakis to be the treasury head mainly due to his worldwide fame and his “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
The former leader alleges how his finance chief had a personal motives that involved promoting his publications as well as testing out his own economic models using Greece rather than truly advocating its economic stability.
Tsipras noted how the discussions to stave off bankruptcy became “not only a method of achieving a better deal for the country. They became an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, the country found itself dangerously close to leaving the single currency area.
At stake was both the country's destiny and those severe austerity policies required in exchange for bailout funds by international creditors.
Failed Options
Attempts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras was forced to ignore the result then agree to a rescue deal with creditors which proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When the minister proposed a backup strategy involving creating a secondary currency as well as issuing vouchers to retirees, the leader said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate management.”
He further claimed that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked anger along with shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
