In a newly released personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the turbulent period during Greece's economic turmoil.
A Controversial Choice
In Tsipras's version, Tsipras appointed the maverick economist Varoufakis to be his finance minister mainly because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more of a star rather than an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed a personal agenda which included promoting his books as well as testing out his economic models on Greece instead of genuinely fighting for its economic stability.
Tsipras wrote that the discussions to stave off insolvency were “not only a method of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the validity of his ideas.”
Critical Negotiations
During rollercoaster discussions, Greece came dangerously close to leaving the eurozone.
At stake was not only the country's destiny and those severe cutbacks demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, the punitive bailout terms were put to a public vote, an action which threw the EU into a further crisis of identity.
Even though the vote was won decisively by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
Within the book, the author concludes how his former ally had proved himself to be “unfit for a deal that required intricate and sensitive management.”
Tsipras further wrote that his aggressive approach left him more and more alone with colleagues, put Greece at risk, and helped hawks who were pushing for Grexit.
This retelling of events has been met with fury and shock in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
