Within his freshly published autobiography, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he examines the turbulent era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras appointed the maverick economist Varoufakis to be his treasury head mainly because of his global profile along with his highly compelling skills when it came to communicator.
“He was, truthfully, more like a personality and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief possessed his own agenda which involved advancing Varoufakis's publications as well as testing out his game theories using the nation instead of truly fighting for its economic stability.
He wrote that those discussions to stave off insolvency were “not just a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself dangerously on the brink of leaving the single currency area.
At stake was not only Greece's future and those punishing cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by voters against austerity, Tsipras had little option but to ignore the result and agree to a bailout package with foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the front pages of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency and issuing coupons to pensioners, Tsipras knew it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts that Varoufakis had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The account of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
