Within his newly released personal account, called Ithaki, the ex- leader Alexis Tsipras does not hold back as he reflects on the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras chose the maverick economist Varoufakis as his treasury head mainly due to his international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“He was, in reality, more like a star rather than an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras suggests how Varoufakis had a personal motives that involved promoting Varoufakis's books and experimenting with his own theories using the nation rather than genuinely advocating its financial survival.
Tsipras wrote that the negotiations to avoid bankruptcy were “not only a method of achieving a better deal for Greece. They were an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
On the line lay both Greece's destiny and the severe austerity policies required in return for rescue loans from international creditors.
Failed Options
Efforts to find funds from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, an action that threw Europe into a deeper existential crisis.
Even though the vote was won decisively by voters against austerity, the prime minister had little option but to reject its outcome and agree to a bailout package with creditors that proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, the author concludes that his former ally demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
He further wrote that his confrontational style left him more and more alone among peers, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
