In a freshly published personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, he selected the unorthodox academic Varoufakis as the treasury head primarily due to his worldwide fame and Varoufakis's highly compelling abilities as a communicator.
“He was, truthfully, more like a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief had a personal motives that included promoting Varoufakis's books as well as testing out his theories using the nation instead of truly fighting for its financial survival.
Tsipras wrote that the discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental opportunity to prove the validity of his economic theories.”
Critical Negotiations
During tense negotiations, Greece came perilously on the brink of exiting the eurozone.
On the line was not only Greece's destiny but also those punishing cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, an action that threw Europe into a further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister proposed a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also claimed that his confrontational approach made him increasingly isolated with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
