In a newly released personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back while he revisits that chaotic era of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's version, he appointed the unorthodox academic Varoufakis to be his finance minister mainly because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, truthfully, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader claims that his finance chief had a personal motives that involved advancing his books as well as experimenting with his own theories on the nation instead of genuinely advocating the country's financial survival.
He noted how the talks to avoid bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the truth of his theories.”
Critical Negotiations
During volatile negotiations, Greece found itself perilously on the brink of exiting the eurozone.
On the line was not only the country's future and those harsh austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a public vote, an action that threw Europe into a further existential crisis.
Although the referendum was carried decisively by voters who opposed the cuts, the prime minister had little option but to reject its outcome and agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy that included creating a secondary currency and distributing vouchers to retirees, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Enduring Criticism
Within the book, the author asserts that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed that his confrontational style left him more and more alone with colleagues, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
