Within his recently unveiled memoir, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that turbulent period of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, he chose the unorthodox academic Varoufakis to be the finance minister mainly due to the latter's global profile along with Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis possessed his own agenda which included promoting his publications and testing out his game theories using the nation rather than genuinely advocating the country's economic stability.
He explained how the talks to avoid insolvency were “not only a way of achieving a better deal for the country. They became a test, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came dangerously close to exiting the single currency area.
On the line lay not only the country's destiny but also those severe austerity policies demanded in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that threw Europe into a further existential crisis.
Although the vote was carried resoundingly by voters against austerity, Tsipras had little option but to ignore the result then agree to a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader knew it was the end questioning him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
He further claimed how his aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
This account of history has provoked fury along with stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence on the matter.
