In a newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits the turbulent period of Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis as his treasury head largely because of his worldwide fame along with his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed his own motives that involved promoting his publications and testing out his own economic models using Greece instead of truly fighting for its economic stability.
Tsipras wrote that those talks to stave off bankruptcy were “not only a way of achieving improved terms for the country. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's future and the severe austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the harsh conditions were subjected to a popular referendum, a move which plunged the EU into a further crisis of identity.
Although the vote was won decisively by those against austerity, the prime minister was forced to ignore the result then negotiate a rescue deal with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan involving establishing a parallel currency and issuing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
