Within his recently unveiled memoir, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on the chaotic period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, he selected the unorthodox academic Varoufakis to be the treasury head primarily because of his global profile and Varoufakis's very persuasive abilities when it came to speaker.
“He was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief possessed a personal agenda which involved promoting his publications as well as experimenting with his own theories using the nation instead of truly advocating the country's economic stability.
He noted how the negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They were an experiment, an historic chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country found itself perilously close to leaving the single currency area.
On the line was not only the country's future and those punishing cutbacks demanded in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were subjected to a popular referendum, a move that plunged the EU into a further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister was forced to reject its outcome and agree to a rescue deal from creditors that proved to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for an agreement that required complex and sensitive management.”
He also claimed how his confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has provoked anger and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
