In a freshly published personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the chaotic era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis to be the finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis possessed a personal agenda which involved advancing his publications as well as testing out his game theories on the nation instead of genuinely advocating the country's financial survival.
Tsipras noted that the talks to stave off insolvency became “not only a method of achieving a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line was both Greece's destiny and those harsh austerity measures demanded in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to find financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those harsh conditions were subjected to a public vote, an action which threw Europe into further existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for an agreement demanding complex and delicate handling.”
He further claimed how Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
The account of events has provoked anger along with shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
