In a newly released personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent period of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's version, he chose that maverick economist Varoufakis to be his treasury head primarily due to the latter's global profile along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more like a star and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal motives that included advancing Varoufakis's publications as well as experimenting with his economic models on Greece rather than genuinely fighting for the country's economic stability.
Tsipras noted that those discussions to stave off insolvency were “not only a method to secure a better deal for Greece. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During rollercoaster discussions, Greece came perilously close to exiting the eurozone.
On the line lay not only the country's future and the severe cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those excoriating bailout terms were put to a popular referendum, an action that plunged Europe into a further existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced but to ignore the result then agree to a bailout package with foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive management.”
He also wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
