In a freshly published personal account, titled Ithaki, the ex- leader Alexis Tsipras does not hold back while he examines that chaotic era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, Tsipras appointed the unorthodox academic Varoufakis as the treasury head largely due to his international reputation and Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more of a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had his own agenda which included advancing his books and experimenting with his theories on the nation rather than truly advocating the country's economic stability.
Tsipras explained how those discussions to avoid bankruptcy became “not only a method to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the validity of his ideas.”
Critical Negotiations
Amid rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line was not only the country's destiny and those severe austerity measures demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a public vote, an action that threw Europe into further existential crisis.
Although the referendum was carried decisively by voters against austerity, Tsipras was forced to ignore the result and agree to a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he relished the spotlight.”
When the minister outlined a contingency plan that included creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end questioning him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
Tsipras further wrote that his confrontational style left him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and stunned disbelief in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
