Within his newly released personal account, named Ithaki, the ex- premier Alexis Tsipras does not hold back while he revisits that chaotic era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, he chose that maverick academic Varoufakis as the treasury head primarily due to the latter's global profile and his “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief had his own agenda which involved advancing his publications as well as experimenting with his own theories using Greece rather than truly fighting for its financial survival.
Tsipras explained that those negotiations to avoid insolvency were “not just a way to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously close to exiting the single currency area.
At stake was not only Greece's destiny and the harsh austerity policies demanded in return for financial aid from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a public vote, an action that threw Europe into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy involving creating a parallel currency as well as issuing coupons to retirees, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal that required complex and delicate handling.”
He further claimed how Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
The retelling of history has been met with fury and stunned disbelief among certain groups, while the former minister has maintained a deafening silence regarding these claims.
