In a recently unveiled personal account, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits the chaotic era during Greece's financial crisis.
An Unconventional Choice
In Tsipras's recollections, Tsipras appointed the maverick academic Varoufakis as the treasury head mainly because of his global profile along with Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims that his finance chief possessed a personal motives which included advancing Varoufakis's publications as well as experimenting with his own game theories on Greece instead of truly advocating the country's economic stability.
Tsipras noted that those negotiations to avoid bankruptcy became “not only a way of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was both Greece's future and the punishing austerity measures required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by voters against austerity, Tsipras was forced to ignore the result then agree to a rescue deal with creditors which turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who attracted publicity, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency as well as issuing vouchers to retirees, the leader knew it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes how his former ally had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras also claimed how his confrontational approach left him more and more alone among peers, endangered the country, while assisted hardliners who were advocating Grexit.
This retelling of events has been met with fury and shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
