In a newly released personal account, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he examines that turbulent era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, Tsipras appointed the maverick economist Varoufakis to be his treasury head primarily due to the latter's international reputation along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests how Varoufakis possessed a personal motives which involved advancing Varoufakis's books as well as experimenting with his own theories on Greece rather than genuinely fighting for its financial survival.
Tsipras wrote that the negotiations to stave off bankruptcy were “not just a method to secure a better deal for Greece. They became an experiment, a monumental chance to demonstrate the truth of his economic theories.”
Critical Talks
During volatile discussions, Greece found itself perilously on the brink of leaving the eurozone.
At stake lay both the country's destiny and those punishing austerity policies required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action that threw the EU into a deeper crisis of identity.
Although the vote was won resoundingly by voters who opposed austerity, the prime minister was forced but to ignore the result then agree to a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author concludes that Varoufakis had proved himself “unsuitable for a deal demanding complex and delicate handling.”
He further claimed that his confrontational style made him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were pushing for Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
