In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's account, he appointed the maverick academic Varoufakis as the treasury head mainly due to his global profile and his highly compelling abilities as a public orator.
“He was, in reality, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis had his own motives that included advancing Varoufakis's publications and testing out his own game theories using the nation instead of truly fighting for the country's financial survival.
Tsipras explained how those negotiations to avoid insolvency became “not only a way to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came perilously on the brink of exiting the single currency area.
On the line was not only Greece's future and the punishing cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a public vote, an action which threw Europe into a deeper existential crisis.
Even though the vote was won resoundingly by voters who opposed austerity, Tsipras had little option to reject its outcome and negotiate a bailout package from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate management.”
He also claimed that his aggressive style left him increasingly isolated among peers, endangered the country, while helped hawks who were advocating Grexit.
This account of events has been met with anger and shock in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
