Within his recently unveiled personal account, named Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, Tsipras selected the unorthodox economist Varoufakis as the treasury head largely due to his global profile along with his very persuasive skills when it came to speaker.
“He was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had a personal motives that included promoting his books as well as testing out his own economic models on Greece instead of truly fighting for its financial survival.
He explained that those discussions to stave off bankruptcy became “not just a way of achieving a better deal for the country. They became an experiment, an historic opportunity to prove the validity of his theories.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously close to leaving the single currency area.
At stake lay both the country's future and the harsh austerity measures required in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, the harsh conditions were put to a public vote, a move that plunged Europe into further existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, Tsipras was forced to ignore the result then negotiate a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate handling.”
He further wrote that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
This retelling of history has provoked fury and shock among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
