In a newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Choice
As per Tsipras's version, he selected the unorthodox economist Varoufakis as his treasury head mainly due to the latter's international reputation along with Varoufakis's highly compelling skills when it came to public orator.
“He was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras claims how Varoufakis had a personal motives that included promoting his books and testing out his game theories using Greece instead of truly advocating its economic stability.
Tsipras explained how those talks to stave off bankruptcy became “not only a way to secure improved terms for the country. They were an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
Critical Talks
During tense discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line lay both Greece's future but also those punishing austerity measures required in return for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those punitive conditions were subjected to a popular referendum, a move which threw Europe into a deeper existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras was forced but to reject its outcome then negotiate a rescue deal from creditors that proved to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving creating a parallel currency and distributing coupons to retirees, the leader said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement that required complex and delicate handling.”
He also wrote how his confrontational approach left him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for Grexit.
The retelling of history has been met with fury and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
