Within his newly released memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits that chaotic era of Greece's financial crisis.
An Unconventional Choice
In Tsipras's recollections, he chose that unorthodox academic Varoufakis as the treasury head largely due to the latter's global profile and Varoufakis's very persuasive skills when it came to public orator.
“He was, truthfully, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Agendas
The former leader alleges that Varoufakis had a personal motives which involved promoting his publications and experimenting with his game theories on the nation rather than genuinely fighting for its economic stability.
Tsipras noted how the negotiations to avoid insolvency were “not only a method of achieving a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece came dangerously close to leaving the eurozone.
At stake lay both Greece's future but also the severe austerity policies demanded in return for financial aid by foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, an action that plunged Europe into a further existential crisis.
Although the referendum was won resoundingly by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency as well as distributing coupons to pensioners, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further wrote that 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 fury and shock in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
