In a newly released autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back as he examines that chaotic era during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis to be the treasury head mainly because of the latter's international reputation along with his very persuasive skills when it came to public orator.
“He was, actually, more of a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader claims that his finance chief had his own agenda that included advancing his books as well as testing out his game theories using Greece instead of genuinely advocating its financial survival.
He noted how the negotiations to stave off bankruptcy became “not just a way of achieving a better deal for the country. They were an experiment, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
On the line was not only the country's future but also the punishing cutbacks demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the punitive conditions were subjected to a public vote, a move which threw the EU into a further existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option to reject its outcome and negotiate a bailout package from foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
After the minister proposed a backup strategy involving creating a secondary currency as well as distributing coupons to pensioners, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis had proved himself “unfit for an agreement that required complex and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for Grexit.
The account of history has provoked anger and stunned disbelief among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
