In a newly released memoir, called Ithaki, the former premier Alexis Tsipras does not hold back as he revisits that turbulent era during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, Tsipras appointed that maverick economist Varoufakis to be the treasury head mainly because of his worldwide fame and his “extremely attractive” skills when it came to communicator.
“He was, actually, more like a star and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own agenda that included promoting Varoufakis's books and experimenting with his economic models on Greece instead of genuinely advocating the country's economic stability.
Tsipras noted that the talks to prevent insolvency became “not just a way of achieving a better deal for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously close to leaving the eurozone.
At stake was both Greece's destiny and the punishing cutbacks required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those excoriating conditions were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Although the referendum was won resoundingly by voters against the cuts, Tsipras was forced but to reject its outcome and agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency and distributing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for an agreement demanding complex and delicate handling.”
He also wrote how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
