Within his newly released memoir, called Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on the chaotic era during Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, Tsipras appointed that maverick academic Varoufakis as the treasury head primarily because of his global profile and Varoufakis's very persuasive skills when it came to public orator.
“In reality, he was, in reality, more like a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims that Varoufakis possessed a personal agenda which involved promoting his publications and testing out his own economic models on the nation instead of truly fighting for its financial survival.
Tsipras wrote how those negotiations to avoid insolvency became “not just a way of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came perilously close to exiting the eurozone.
At stake lay not only Greece's destiny but also those harsh cutbacks demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras was forced to ignore the result and negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, the leader knew that it was the end questioning him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive handling.”
He further claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has provoked anger and stunned disbelief in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
