Within his newly released personal account, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on the chaotic era during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's recollections, he selected that maverick economist Varoufakis as his treasury head primarily due to his worldwide fame along with Varoufakis's “extremely attractive” skills as a speaker.
“He was, in reality, more like a star and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had his own agenda that included advancing his books and testing out his own economic models using Greece rather than truly fighting for its economic stability.
Tsipras wrote how the talks to stave off bankruptcy were “not only a method of achieving improved terms for the country. They were a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself perilously close to leaving the eurozone.
On the line lay not only Greece's future and the severe austerity policies required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, the harsh bailout terms were put to a public vote, a move that plunged the EU into a further existential crisis.
Although the vote was won resoundingly by voters against austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … it seemed he relished his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally had proved himself to be “unfit for a deal that required intricate and delicate management.”
He also wrote how his aggressive style left him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
