In a freshly published personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's debt drama.
A Controversial Choice
According to Tsipras's version, he chose the unorthodox academic Varoufakis to be his finance minister largely because of the latter's international reputation and his very persuasive abilities as a speaker.
“In reality, he was, in reality, more of a celebrity and less of an economist,” stated Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had a personal motives that involved advancing his books as well as testing out his economic models using the nation instead of genuinely fighting for its economic stability.
Tsipras explained that those talks to avoid bankruptcy became “not just a way to secure a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile negotiations, Greece found itself dangerously close to exiting the eurozone.
On the line was not only the country's future and those punishing austerity measures demanded in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, those excoriating conditions were put to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome and negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and delicate management.”
Tsipras also wrote that his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
