Within his recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits the turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras appointed that unorthodox economist Varoufakis to be his treasury head largely because of his worldwide fame along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more of a star rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader claims how his finance chief possessed a personal motives which involved advancing Varoufakis's books as well as testing out his own economic models using Greece instead of truly advocating the country's financial survival.
He wrote that the talks to stave off bankruptcy became “not just a way of achieving improved terms for Greece. They became a test, a monumental chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came dangerously close to leaving the eurozone.
On the line was both the country's destiny and those severe austerity measures demanded in return for rescue loans by international creditors.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, an action which plunged Europe into further crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result and agree to a bailout package with creditors which proved to be tougher.
Final Straw
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, the leader said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unfit for an agreement that required complex and sensitive handling.”
He also wrote that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
This retelling of events has been met with fury along with stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
