Within his recently unveiled autobiography, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the chaotic era of Greece's debt drama.
A Controversial Choice
As per Tsipras's recollections, Tsipras chose the unorthodox economist Varoufakis to be the finance minister largely because of his international reputation along with his very persuasive abilities as a speaker.
“He was, in reality, more of a personality rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief had a personal agenda which included promoting his publications and testing out his own game theories on the nation instead of genuinely fighting for the country's financial survival.
He wrote that those discussions to avoid insolvency became “not just a way to secure a better deal for Greece. They were an experiment, an historic chance to demonstrate the validity of his theories.”
High-Stakes Talks
Amid tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay not only Greece's destiny and the severe austerity policies demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, a move that threw Europe into a deeper crisis of identity.
Although the referendum was won resoundingly by voters who opposed austerity, Tsipras was forced to ignore the result then negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who graced the covers of magazines the world over … it seemed he relished his new role.”
After the minister proposed a contingency plan involving creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
He further wrote how Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
