In a recently unveiled personal account, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits the chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he appointed the unorthodox academic Varoufakis as his treasury head largely due to the latter's international reputation and his “extremely attractive” abilities when it came to public orator.
“In reality, he was, in reality, more of a star rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief possessed his own motives that involved advancing Varoufakis's books as well as testing out his own theories on the nation rather than genuinely advocating the country's economic stability.
Tsipras noted how those talks to avoid insolvency were “not just a way of achieving a better deal for Greece. They were an experiment, an historic opportunity to prove the truth of his theories.”
Critical Talks
Amid volatile discussions, Greece came dangerously close to exiting the single currency area.
At stake was both the country's destiny but also the punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, those punitive conditions were put to a popular referendum, a move which threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by those who opposed austerity, the prime minister had little option to ignore the result then agree to a rescue deal from foreign lenders that proved to be more severe.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate handling.”
Tsipras further wrote that his confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger and stunned disbelief among certain groups, while the former minister has maintained a deafening silence on the matter.
