Within his recently unveiled personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's debt drama.
A Controversial Appointment
In the ex-PM's recollections, he selected that maverick economist Varoufakis as his treasury head mainly because of the latter's global profile along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a star rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed a personal motives which included promoting his books and testing out his own game theories using Greece instead of truly advocating the country's financial survival.
He explained that the negotiations to avoid bankruptcy were “not just a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
Amid volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
On the line lay both the country's future but also those severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
That summer, the harsh conditions were subjected to a public vote, a move which plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by those who opposed the cuts, the prime minister was forced but to ignore the result then negotiate a bailout package from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras also claimed that his aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were pushing for Grexit.
This account of history has provoked anger along with stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
