In a recently unveiled personal account, called Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he examines that chaotic era during Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, Tsipras chose the unorthodox academic Varoufakis to be the treasury head largely because of his international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, actually, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis had his own motives which involved promoting Varoufakis's publications as well as testing out his theories on the nation rather than truly advocating its economic stability.
He wrote that those talks to prevent insolvency became “not only a method to secure a better deal for Greece. They were an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously close to leaving the eurozone.
At stake was not only the country's future and the punishing cutbacks demanded in return for rescue loans by international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal from foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and sensitive management.”
He further claimed that his aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with anger along with shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
