Within his recently unveiled personal account, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he revisits the turbulent era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose that unorthodox economist Varoufakis as his treasury head largely because of his international reputation and his highly compelling abilities when it came to public orator.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed his own motives which involved advancing his publications as well as experimenting with his own economic models using Greece instead of genuinely advocating its financial survival.
He wrote that the discussions to prevent bankruptcy became “not only a method of achieving a better deal for the country. They were a test, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny but also the punishing austerity measures demanded in exchange for bailout funds by international creditors.
Failed Options
Efforts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, an action which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters against the cuts, Tsipras was forced but to ignore the result then negotiate a rescue deal from creditors which proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive management.”
He also wrote how his confrontational style made him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
