In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras does not hold back while he examines that turbulent era of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras chose that maverick economist Varoufakis to be the finance minister mainly because of the latter's global profile and Varoufakis's highly compelling skills when it came to public orator.
“He was, truthfully, more like a star and less of an economist,” wrote Tsipras.
Clashing Agendas
Tsipras alleges that his finance chief possessed his own agenda that involved advancing his publications and testing out his economic models on the nation rather than truly advocating the country's financial survival.
He explained that the negotiations to prevent insolvency were “not just a way to secure a better deal for the country. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself perilously on the brink of exiting the eurozone.
On the line lay both Greece's destiny and the severe austerity measures demanded in return for financial aid from international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, an action that threw the EU into a further existential crisis.
Although the referendum was won resoundingly by voters against the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who drew media attention, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unsuitable for a deal demanding intricate and sensitive management.”
He also wrote that his confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and shock in some quarters, while the former minister has kept a deafening silence on the matter.
