In a recently unveiled autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits the chaotic era during Greece's economic turmoil.
A Controversial Choice
According to Tsipras's account, Tsipras selected the maverick academic Varoufakis to be the treasury head largely due to his international reputation and Varoufakis's very persuasive skills as a communicator.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
The former leader claims how Varoufakis possessed his own motives which included promoting Varoufakis's publications as well as experimenting with his own economic models using Greece instead of truly advocating the country's financial survival.
Tsipras explained how those negotiations to avoid insolvency were “not only a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay both Greece's destiny but also those punishing austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, the harsh conditions were put to a popular referendum, an action that threw Europe into a further existential crisis.
Although the referendum was won resoundingly by those against the cuts, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Criticism
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras further wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating Grexit.
This account of events has been met with fury along with shock among certain groups, while the former minister has so far maintained a deafening silence regarding these claims.
