Within his newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras does not hold back while he reflects on the chaotic era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's recollections, he appointed that unorthodox economist Varoufakis as the treasury head mainly because of his global profile and his “extremely attractive” skills as a public orator.
“In reality, he was, actually, more of a personality rather than an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis possessed his own agenda that included promoting Varoufakis's publications as well as testing out his own economic models on the nation instead of genuinely advocating its economic stability.
He explained how those negotiations to prevent insolvency became “not only a method to secure a better deal for the country. They became a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
On the line lay not only Greece's future but also those severe austerity measures required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those harsh conditions were put to a public vote, an action which plunged the EU into further existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, the prime minister had little option to reject its outcome and negotiate a rescue deal with creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Enduring Criticism
Within the book, the author concludes how his former ally had proved himself “unfit for a deal that required intricate and delicate handling.”
Tsipras further wrote that his confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
The retelling of events has provoked fury along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
