Within his freshly published personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits that chaotic era during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected the unorthodox economist Varoufakis to be the finance minister primarily due to the latter's international reputation along with Varoufakis's very persuasive skills as a communicator.
“In reality, he was, in reality, more like a star rather than an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis possessed his own motives that included promoting his books as well as testing out his own game theories using the nation instead of truly fighting for the country's financial survival.
Tsipras noted how the negotiations to avoid insolvency became “not just a method to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line lay not only the country's future and those harsh austerity policies required in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a public vote, a move that plunged the EU into deeper crisis of identity.
Although the vote was won resoundingly by those against the cuts, Tsipras was forced to ignore the result then agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras knew it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts how his former ally demonstrated himself “unsuitable for an agreement demanding intricate and delicate handling.”
He further wrote how his confrontational style made him more and more alone with colleagues, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with fury along with shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
