In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he examines the turbulent era during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's recollections, he selected that unorthodox economist Varoufakis as his treasury head primarily because of the latter's international reputation and his “extremely attractive” skills as a speaker.
“He was, truthfully, more like a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief possessed his own agenda that included promoting his books and testing out his own game theories using Greece instead of genuinely fighting for the country's financial survival.
Tsipras wrote that the negotiations to prevent bankruptcy became “not just a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
During rollercoaster negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was not only Greece's destiny but also those punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the harsh conditions were subjected to a public vote, an action that plunged Europe into a deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result and agree to a rescue deal with foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and issuing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
He also wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has provoked fury along with shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
