In a newly released memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he revisits the chaotic era during Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's account, he appointed the unorthodox economist Varoufakis to be his finance minister mainly due to the latter's worldwide fame along with Varoufakis's highly compelling abilities when it came to public orator.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis had his own motives that included promoting his books as well as experimenting with his own game theories using the nation rather than truly advocating its financial survival.
He explained how those negotiations to stave off bankruptcy became “not only a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of his ideas.”
Critical Talks
During volatile discussions, the country found itself perilously close to leaving the single currency area.
On the line was both the country's destiny and the harsh austerity policies required in exchange for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the excoriating conditions were subjected to a public vote, an action which plunged the EU into a deeper existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, the prime minister had little option but to ignore the result then agree to a bailout package with creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing coupons to pensioners, the leader knew that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts how his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further wrote how his confrontational style made him more and more alone among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
