Within his freshly published autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines the turbulent period during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras appointed the unorthodox economist Varoufakis as the treasury head mainly due to the latter's worldwide fame and his very persuasive abilities as a communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief had a personal motives that included advancing his publications and experimenting with his economic models using Greece rather than truly fighting for its economic stability.
Tsipras explained that the negotiations to avoid bankruptcy became “not just a method of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came perilously close to exiting the single currency area.
At stake was both Greece's destiny and those severe cutbacks demanded in return for financial aid from international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action that threw Europe into further existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced but to ignore the result then agree to a bailout package from creditors which proved to be more severe.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing vouchers to pensioners, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
He also wrote that his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This account of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
