In a newly released personal account, named Ithaki, the former prime minister Alexis Tsipras does not hold back while he examines that turbulent period of Greece's debt drama.
A Controversial Appointment
In Tsipras's version, Tsipras appointed the unorthodox economist Varoufakis to be his finance minister largely because of the latter's international reputation along with his “extremely attractive” abilities when it came to communicator.
“He was, truthfully, more of a celebrity and less of an economic expert,” stated Tsipras.
Clashing Agendas
The former leader alleges how Varoufakis possessed a personal agenda which involved advancing his publications as well as testing out his own economic models using Greece rather than genuinely advocating its financial survival.
Tsipras noted how the discussions to prevent insolvency became “not just a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the truth of his economic theories.”
Critical Negotiations
During volatile discussions, the country found itself dangerously close to exiting the eurozone.
At stake lay both Greece's future and the punishing austerity measures demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the referendum was won resoundingly by those against austerity, Tsipras was forced but to ignore the result then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as issuing coupons to retirees, the leader knew it was the end and asked him: “Are you serious?”
Lasting Criticism
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and delicate handling.”
He also claimed that his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This account of history has been met with anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
