In a newly released memoir, titled Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
In Tsipras's account, he chose the unorthodox economist Varoufakis to be the finance minister largely because of his international reputation and his very persuasive abilities when it came to communicator.
“In reality, he was, in reality, more of a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how Varoufakis had his own agenda that included promoting his books and experimenting with his own economic models using the nation instead of genuinely fighting for the country's economic stability.
Tsipras wrote how the negotiations to stave off insolvency were “not just a way of achieving improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, Greece came perilously close to leaving the single currency area.
At stake lay not only Greece's future but also the harsh austerity policies demanded in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive conditions were subjected to a public vote, a move that plunged the EU into further existential crisis.
Although the referendum was carried decisively by voters who opposed the cuts, the prime minister had little option but to ignore the result and agree to a bailout package with creditors which proved to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”
After the minister outlined a contingency plan involving creating a parallel currency and distributing vouchers to retirees, the leader knew it was game over and asked him: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras asserts that his former ally had proved himself to be “unfit for a deal that required intricate and sensitive management.”
He further claimed how his aggressive style made him more and more alone with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The account of history has been met with fury along with shock among certain groups, while the former minister has maintained a deafening silence regarding these claims.
