Within his recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines the chaotic period of Greece's financial crisis.
A Controversial Appointment
In Tsipras's recollections, Tsipras appointed the maverick academic Varoufakis to be his treasury head mainly because of his worldwide fame along with Varoufakis's highly compelling skills as a public orator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis possessed a personal agenda that involved promoting Varoufakis's books as well as experimenting with his game theories using Greece rather than truly fighting for its economic stability.
He noted that the negotiations to stave off bankruptcy were “not only a method of achieving improved terms for the country. They were an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's future and those punishing austerity measures required in exchange for rescue loans by international creditors.
Failed Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the excoriating bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the vote was won decisively by those who opposed austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal with creditors which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency and issuing coupons to retirees, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, the author concludes that Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
