Within his freshly published memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits that chaotic period of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras chose the unorthodox academic Varoufakis to be the treasury head largely due to his worldwide fame and his “extremely attractive” skills when it came to speaker.
“He was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how Varoufakis had his own agenda that involved advancing Varoufakis's books as well as experimenting with his game theories using the nation rather than genuinely fighting for its economic stability.
Tsipras wrote that the discussions to prevent bankruptcy were “not just a method to secure improved terms for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, the country found itself perilously on the brink of exiting the single currency area.
At stake was not only Greece's future but also those punishing austerity measures demanded in return for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those harsh bailout terms were subjected to a public vote, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package 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 negotiation, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also claimed how Varoufakis's confrontational style made him more and more alone among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
