Within his newly released memoir, called Ithaki, the former premier Alexis Tsipras does not hold back as he revisits that turbulent period during Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras appointed the maverick academic Varoufakis as the finance minister mainly due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to communicator.
“In reality, he was, actually, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed a personal agenda which involved promoting his publications and experimenting with his own economic models using Greece rather than truly fighting for its financial survival.
He noted how those talks to prevent bankruptcy became “not just a way of achieving improved terms for Greece. They became a test, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came dangerously close to exiting the single currency area.
At stake lay both Greece's destiny and the harsh austerity policies demanded in exchange for bailout funds by international creditors.
Failed Options
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the excoriating conditions were put to a public vote, a move that threw Europe into deeper crisis of identity.
Even though the vote was won resoundingly by voters against the cuts, Tsipras had little option to ignore the result and agree to a bailout package from creditors which proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and distributing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras further wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, while helped hardliners that were pushing for Grexit.
This retelling of history has been met with fury and shock among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
