Within his newly released memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras selected that maverick academic Varoufakis to be his treasury head mainly because of his international reputation along with Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more of a personality and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief possessed a personal agenda which included promoting Varoufakis's publications as well as experimenting with his own game theories using Greece rather than genuinely fighting for the country's financial survival.
He wrote how those negotiations to avoid insolvency were “not just a way to secure a better deal for Greece. They were a test, an historic chance to prove the truth of his economic theories.”
High-Stakes Talks
During volatile discussions, Greece found itself dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also those severe austerity policies required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, the punitive conditions were subjected to a popular referendum, an action that threw Europe into further existential crisis.
Although the vote was won resoundingly by those against the cuts, Tsipras was forced to reject its outcome and agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts that his former ally had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
He further claimed how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
