In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on that chaotic era of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's account, he chose the maverick academic Varoufakis as his finance minister largely due to the latter's worldwide fame and Varoufakis's very persuasive abilities as a speaker.
“He was, actually, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims how Varoufakis possessed his own motives that included advancing Varoufakis's books and experimenting with his economic models on Greece rather than genuinely fighting for its financial survival.
Tsipras noted how the discussions to stave off bankruptcy were “not just a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece found itself dangerously on the brink of exiting the eurozone.
At stake lay both the country's destiny but also the punishing cutbacks required in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure funds elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were put to a public vote, a move that threw the EU into a deeper existential crisis.
Although the vote was won resoundingly by those against austerity, Tsipras was forced but to reject its outcome and negotiate a bailout package with creditors which turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications the world over … it seemed he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how his former ally had proved himself to be “unfit for an agreement demanding complex and delicate management.”
He also wrote how his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
