In a newly released personal account, called Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he revisits that turbulent period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, he selected the unorthodox economist Varoufakis as the finance minister primarily due to his worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“He was, truthfully, more like a star rather than an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader suggests that his finance chief possessed his own agenda which included promoting his books as well as experimenting with his theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras wrote that those discussions to avoid insolvency were “not just a method to secure improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake lay both Greece's destiny and the harsh cutbacks demanded in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move that plunged the EU into further existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras had little option to reject its outcome then negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
After the minister outlined a contingency plan that included creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over questioning him: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
He also wrote that his aggressive approach made him increasingly isolated among peers, endangered the country, while helped hawks that were pushing for Grexit.
The retelling of history has provoked fury along with stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
