In a newly released autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he examines the chaotic era of Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's account, he selected the unorthodox academic Varoufakis as his finance minister largely due to his international reputation and his very persuasive abilities when it came to speaker.
“He was, in reality, more of a star rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed his own motives that involved advancing his books as well as experimenting with his own theories on Greece rather than truly advocating its economic stability.
He explained how the negotiations to stave off bankruptcy were “not just a way to secure improved terms for the country. They became an experiment, an historic chance to prove the validity of his theories.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously close to exiting the single currency area.
At stake lay both the country's destiny and the severe austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was won resoundingly by voters against austerity, the prime minister had little option but to reject its outcome and negotiate a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, the author concludes that his former ally had proved himself “unfit for an agreement that required complex and sensitive handling.”
He also claimed how his confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were advocating Grexit.
The retelling of history has provoked anger along with stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
