In a recently unveiled personal account, called Ithaki, the former premier Alexis Tsipras does not hold back as he examines that chaotic era during Greece's financial crisis.
A Controversial Choice
In the ex-PM's version, he chose the unorthodox economist Varoufakis as his treasury head primarily due to his international reputation along with his very persuasive abilities as a public orator.
“He was, actually, more like a star and less of an economist,” stated the 51-year-old.
Conflicting Agendas
Tsipras claims that his finance chief possessed a personal agenda which included promoting his books as well as experimenting with his own economic models on the nation instead of truly advocating its economic stability.
Tsipras noted that those discussions to stave off insolvency became “not just a method to secure improved terms for Greece. They became a test, a monumental chance to prove the validity of his ideas.”
Critical Negotiations
Amid rollercoaster discussions, Greece came perilously on the brink of leaving the single currency area.
At stake was both Greece's destiny but also those harsh austerity measures demanded in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that plunged Europe into a further existential crisis.
Even though the referendum was won decisively by those against austerity, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating a Greek exit from the euro.
The retelling of events has provoked anger and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
