Within his recently unveiled memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on the chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he selected the maverick economist Varoufakis to be his treasury head primarily because of his international reputation and Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more like a star and less of an economist,” stated Tsipras.
Conflicting Priorities
Tsipras claims how Varoufakis possessed a personal motives which included advancing his publications as well as experimenting with his theories using Greece instead of genuinely fighting for the country's economic stability.
Tsipras wrote how those talks to avoid insolvency became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
On the line lay both the country's future but also the punishing austerity policies demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those excoriating bailout terms were subjected to a public vote, a move that plunged the EU into deeper existential crisis.
Even though the referendum was won resoundingly by those against the cuts, Tsipras was forced to ignore the result and negotiate a bailout package with creditors that turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive handling.”
He further wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
The account of events has provoked anger and shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
