Within his freshly published memoir, called Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on the chaotic period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, he chose that unorthodox economist Varoufakis to be his treasury head primarily due to his international reputation along with his very persuasive skills when it came to public orator.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges that Varoufakis had his own motives which included advancing Varoufakis's books as well as testing out his game theories using Greece instead of genuinely advocating its financial survival.
Tsipras explained how those talks to stave off bankruptcy were “not just a way to secure improved terms for the country. They became a test, an historic opportunity to prove the truth of his ideas.”
Critical Negotiations
Amid rollercoaster discussions, Greece came perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also the severe austerity policies demanded in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, including an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a public vote, a move that threw the EU into a deeper existential crisis.
Although the referendum was carried resoundingly by those against the cuts, Tsipras was forced to ignore the result and negotiate a bailout package from creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the covers of magazines globally … it seemed he relished his new role.”
After the minister outlined a backup strategy involving establishing a secondary currency and distributing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
He further claimed how Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and helped hawks that were advocating Grexit.
This retelling of history has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
