Within his newly released autobiography, named Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on the chaotic period during Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, he appointed that unorthodox economist Varoufakis to be his finance minister primarily because of his worldwide fame and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, in reality, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had his own agenda that included advancing his publications as well as experimenting with his game theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained that those negotiations to prevent insolvency were “not just a way to secure improved terms for Greece. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During volatile discussions, the country found itself dangerously on the brink of leaving the single currency area.
On the line was both Greece's destiny but also the punishing cutbacks demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, a move which threw Europe into a further existential crisis.
Although the vote was won resoundingly by voters against the cuts, the prime minister had little option to reject its outcome and agree to a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who graced the covers of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate handling.”
He further wrote that his aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of history has provoked fury and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
