In a freshly published memoir, named Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's account, Tsipras appointed the maverick economist Varoufakis to be the finance minister mainly due to his worldwide fame along with his very persuasive abilities as a speaker.
“In reality, he was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how his finance chief possessed a personal motives that involved advancing Varoufakis's publications as well as experimenting with his economic models on Greece rather than truly advocating the country's financial survival.
He wrote how the negotiations to prevent bankruptcy became “not just a method to secure improved terms for the country. They were an experiment, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was both Greece's destiny and the harsh austerity policies demanded in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were put to a public vote, a move which threw the EU into deeper existential crisis.
Although the vote was won resoundingly by voters against austerity, Tsipras had little option to ignore the result and agree to a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive handling.”
He also wrote that his aggressive approach made him more and more alone among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
