Within his recently unveiled memoir, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic era of Greece's economic turmoil.
An Unconventional Choice
In Tsipras's version, he chose that maverick academic Varoufakis to be his treasury head mainly due to his international reputation and his “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims how his finance chief had a personal agenda which included advancing his publications and experimenting with his own economic models using Greece instead of truly fighting for its economic stability.
He explained how those negotiations to avoid bankruptcy were “not just a method of achieving improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake was not only the country's destiny but also those punishing austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those punitive conditions were subjected to a public vote, an action that threw Europe into deeper crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result and negotiate a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who attracted publicity, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency and issuing vouchers to retirees, the leader knew that it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also wrote that his aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hawks that were pushing for Grexit.
The account of events has provoked fury along with stunned disbelief among certain groups, while the former minister has so far kept a deafening silence on the matter.
