Within his newly released personal account, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that chaotic era of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, Tsipras selected that unorthodox economist Varoufakis to be the finance minister largely because of the latter's global profile and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal motives which included promoting his books as well as testing out his theories using Greece instead of truly fighting for the country's financial survival.
Tsipras explained that the discussions to prevent insolvency became “not just a way of achieving a better deal for the country. They became an experiment, a monumental chance to prove the truth of his economic theories.”
Critical Talks
Amid volatile negotiations, the country found itself perilously close to exiting the eurozone.
At stake lay both the country's future but also the severe cutbacks required in exchange for rescue loans by international creditors.
Failed Options
Attempts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those excoriating conditions were put to a public vote, an action that threw Europe into deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, the prime minister had little option to reject its outcome then negotiate a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew that it was the end and asked him: “Are you serious?”
Lasting Criticism
In the memoir, the author asserts that Varoufakis had proved himself “unfit for a deal demanding complex and delicate handling.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
