Within his newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he examines the turbulent era during Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, Tsipras appointed the unorthodox economist Varoufakis to be his treasury head primarily because of his international reputation and Varoufakis's highly compelling skills as a speaker.
“He was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief had his own agenda which included advancing Varoufakis's books as well as experimenting with his game theories using Greece rather than truly advocating the country's financial survival.
Tsipras explained that the negotiations to stave off bankruptcy were “not only a way to secure improved terms for the country. They were an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country found itself dangerously close to leaving the single currency area.
At stake lay both Greece's future and the harsh austerity measures demanded in return for financial aid by foreign lenders.
Failed Options
Attempts to secure funds elsewhere, including a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those harsh conditions were put to a popular referendum, a move which threw Europe into a deeper existential crisis.
Even though the referendum was won decisively by those against the cuts, the prime minister had little option but to reject its outcome then negotiate a rescue deal with creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted publicity, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a secondary currency and issuing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and delicate handling.”
He further claimed that his confrontational style left him more and more alone with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
This account of events has provoked fury and stunned disbelief among certain groups, whereas the former minister has kept a deafening silence on the matter.
