In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on that chaotic period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, Tsipras appointed that maverick economist Varoufakis to be his finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader suggests that Varoufakis possessed his own agenda that involved promoting his publications and testing out his own theories on the nation rather than genuinely fighting for its economic stability.
He explained how those negotiations to avoid bankruptcy were “not just a way to secure improved terms for the country. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself dangerously close to leaving the single currency area.
At stake was not only the country's destiny but also those severe austerity policies required in return for bailout funds by foreign lenders.
Failed Options
Attempts to secure financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which plunged Europe into a deeper existential crisis.
Even though the vote was won decisively by those against austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who graced the covers of publications the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency and issuing coupons to retirees, the leader knew it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the book, the author asserts how his former ally demonstrated himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras also claimed how his confrontational style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were pushing for Grexit.
This retelling of history has provoked fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
