In a newly released personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines the chaotic period during Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's version, he chose the maverick economist Varoufakis as the treasury head mainly due to his international reputation and his very persuasive skills as a speaker.
“In reality, he was, actually, more of a celebrity and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader alleges how Varoufakis possessed a personal motives that included promoting his publications and testing out his economic models on Greece instead of truly advocating the country's financial survival.
He noted that the discussions to avoid insolvency were “not just a way to secure improved terms for the country. They were a test, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Talks
During volatile discussions, the country came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny but also those harsh austerity policies required in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those excoriating bailout terms were subjected to a public vote, an action which plunged Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, the prime minister was forced but to ignore the result then negotiate a rescue deal with creditors which turned out to be more severe.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement that required intricate and delicate management.”
Tsipras further claimed that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has been met with anger along with stunned disbelief among certain groups, while the former minister has so far kept a conspicuous quiet regarding these claims.
