In a recently unveiled personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that turbulent era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, he selected the maverick academic Varoufakis as his treasury head primarily because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, truthfully, more like a celebrity rather than an economist,” stated the 51-year-old.
Conflicting Agendas
The former leader suggests how Varoufakis had his own agenda which included advancing Varoufakis's books as well as experimenting with his own theories on Greece rather than genuinely fighting for its financial survival.
Tsipras wrote that those discussions to prevent insolvency became “not only a method of achieving improved terms for Greece. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to leaving the single currency area.
At stake was both the country's destiny and those severe austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were put to a popular referendum, an action which plunged Europe into deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate handling.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with shock in some quarters, whereas the former minister has maintained a deafening silence on the matter.
