In a newly released memoir, named Ithaki, the former premier Alexis Tsipras spares no criticism while he reflects on the chaotic era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, he selected that maverick economist Varoufakis as the finance minister mainly due to his global profile along with his very persuasive skills as a communicator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had a personal motives that involved promoting Varoufakis's publications and experimenting with his own economic models on the nation rather than genuinely fighting for its financial survival.
He noted that those talks to stave off insolvency were “not just a method of achieving a better deal for Greece. They became a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself dangerously close to leaving the single currency area.
At stake was both Greece's destiny but also the punishing austerity measures demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was won decisively by voters against the cuts, the prime minister was forced but to reject its outcome and negotiate a bailout package from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
The retelling of events has been met with fury along with shock among certain groups, while the former minister has so far maintained a deafening silence regarding these claims.
