In a newly released autobiography, titled Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on that turbulent era during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, Tsipras appointed the maverick economist Varoufakis as his treasury head largely because of the latter's worldwide fame along with his very persuasive skills as a public orator.
“He was, in reality, more like a celebrity rather than an economic expert,” stated Tsipras.
Clashing Agendas
Tsipras claims that his finance chief possessed a personal agenda that included advancing his publications as well as testing out his game theories using the nation rather than genuinely fighting for its economic stability.
Tsipras explained how those negotiations to stave off insolvency became “not just a method of achieving improved terms for Greece. They became an experiment, a monumental chance to prove the truth of his ideas.”
High-Stakes Talks
During tense negotiations, Greece found itself perilously on the brink of leaving the single currency area.
On the line lay not only Greece's destiny but also those harsh austerity measures demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive conditions were put to a popular referendum, an action that threw Europe into a deeper crisis of identity.
Although the vote was carried decisively by voters who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to retirees, the leader knew that it was game over questioning him: “Can you be serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
He further wrote how his aggressive style made him more and more alone among peers, put Greece at risk, while assisted hawks who were advocating Grexit.
This account of events has been met with fury along with shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
