In a recently unveiled memoir, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the turbulent period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he chose the maverick academic Varoufakis as the treasury head mainly due to his worldwide fame and his highly compelling skills when it came to public orator.
“He was, actually, more of a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader alleges how his finance chief had a personal agenda which involved promoting Varoufakis's publications as well as experimenting with his game theories on the nation instead of truly fighting for its economic stability.
Tsipras noted that those talks to stave off bankruptcy were “not just a method of achieving improved terms for the country. They were a test, an historic chance to prove the truth of his ideas.”
High-Stakes Talks
During tense negotiations, Greece came perilously on the brink of leaving the eurozone.
At stake lay not only the country's future but also the punishing austerity policies required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those excoriating bailout terms were subjected to a popular referendum, an action that plunged the EU into further existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras knew it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and delicate handling.”
He further claimed that his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
This account of events has been met with fury and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
