In a newly released personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the turbulent period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed the maverick economist Varoufakis to be the treasury head primarily due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills as a speaker.
“He was, actually, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief had his own agenda that involved promoting Varoufakis's books as well as testing out his theories on Greece instead of genuinely advocating its financial survival.
He explained how those talks to avoid insolvency became “not just a way of achieving a better deal for the country. They were a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, Greece came perilously close to leaving the single currency area.
At stake was both Greece's future and those punishing cutbacks demanded in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to find financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those excoriating bailout terms were subjected to a public vote, an action that plunged the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by those against the cuts, the prime minister had little option but to reject its outcome and negotiate a rescue deal with creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He further wrote how his aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with shock in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
