In a recently unveiled memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he revisits the chaotic era during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, he selected that unorthodox academic Varoufakis as his treasury head mainly due to the latter's global profile along with Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed a personal agenda that involved promoting Varoufakis's publications and experimenting with his game theories on Greece rather than genuinely fighting for its financial survival.
Tsipras wrote that those talks to prevent insolvency were “not just a method to secure a better deal for the country. They became a test, a monumental chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
During rollercoaster negotiations, Greece came perilously close to leaving the single currency area.
On the line was both Greece's destiny but also the severe cutbacks demanded in exchange for bailout funds from international creditors.
Failed Options
Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were put to a public vote, an action which threw the EU into a further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He also claimed how Varoufakis's confrontational approach left him more and more alone among peers, endangered the country, while assisted hardliners who were advocating Grexit.
This account of history has been met with anger along with shock among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
