Within his recently unveiled autobiography, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he examines the turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's version, Tsipras appointed the maverick economist Varoufakis to be his treasury head primarily due to the latter's worldwide fame along with his very persuasive skills as a speaker.
“He was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had his own agenda that included promoting Varoufakis's books as well as experimenting with his economic models on the nation rather than genuinely advocating its economic stability.
He wrote that the talks to prevent bankruptcy became “not just a method of achieving a better deal for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also those severe cutbacks required in return for bailout funds from foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, those harsh conditions were put to a popular referendum, a move which threw Europe into a further existential crisis.
Even though the vote was won decisively by those who opposed the cuts, the prime minister was forced to reject its outcome then agree to a rescue deal with creditors which proved to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, while assisted hawks that were advocating Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
