In a newly released autobiography, named Ithaki, the former premier Alexis Tsipras spares no criticism as he examines the turbulent period of Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, Tsipras appointed the maverick economist Varoufakis to be the finance minister mainly because of his global profile along with his very persuasive skills as a communicator.
“He was, actually, more of a celebrity rather than an economic expert,” stated Tsipras.
Clashing Priorities
The former leader claims that Varoufakis possessed his own motives which involved promoting Varoufakis's books as well as testing out his own game theories on Greece instead of truly advocating its economic stability.
He wrote that the negotiations to prevent insolvency were “not only a way to secure improved terms for Greece. They were an experiment, an historic chance to prove the truth of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came perilously close to leaving the single currency area.
On the line lay not only Greece's destiny and those severe austerity policies demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, an action that plunged the EU into a deeper existential crisis.
Although the vote was carried decisively by those who opposed the cuts, the prime minister had little option to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When the minister proposed a contingency plan involving creating a secondary currency and issuing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and sensitive management.”
He further wrote that his confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The account of history has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
