In a newly released memoir, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's account, Tsipras appointed the unorthodox academic Varoufakis to be the treasury head primarily due to his worldwide fame and his very persuasive skills as a communicator.
“He was, actually, more like a celebrity and less of an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief had his own motives which included promoting his publications as well as testing out his game theories using Greece rather than truly fighting for the country's financial survival.
Tsipras explained how those talks to avoid bankruptcy became “not just a way to secure a better deal for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
Critical Talks
Amid tense discussions, the country found itself dangerously close to leaving the single currency area.
On the line was both Greece's future but also the punishing cutbacks demanded in return for financial aid by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those punitive bailout terms were put to a public vote, an action which plunged Europe into further existential crisis.
Although the referendum was carried decisively by those against the cuts, the prime minister was forced but to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who drew publicity, who graced the covers of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, the author asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate management.”
Tsipras also claimed that Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
