In a recently unveiled memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's account, he chose the unorthodox economist Varoufakis as his treasury head largely due to the latter's worldwide fame and his very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that his finance chief had a personal motives that included advancing his publications and testing out his game theories using Greece instead of genuinely fighting for its financial survival.
He wrote how the negotiations to stave off bankruptcy became “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster negotiations, the country came dangerously on the brink of exiting the single currency area.
At stake was not only the country's destiny but also the punishing austerity measures required in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were put to a popular referendum, a move that threw the EU into a deeper existential crisis.
Even though the vote was carried decisively by voters against austerity, the prime minister had little option to ignore the result then negotiate a bailout package with creditors that proved to be even harsher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing coupons to pensioners, the leader knew it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author asserts that his former ally had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras further claimed how his confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners that were advocating Grexit.
The retelling of history has been met with anger along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
