In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis to be his treasury head primarily because of the latter's worldwide fame along with Varoufakis's very persuasive abilities as a public orator.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief had his own motives which involved advancing Varoufakis's publications and testing out his own theories using the nation rather than genuinely fighting for its financial survival.
He noted how those talks to avoid bankruptcy were “not just a method of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
During rollercoaster negotiations, the country found itself perilously on the brink of leaving the single currency area.
On the line lay both Greece's future but also the severe austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a public vote, an action that plunged Europe into a further existential crisis.
Even though the vote was carried decisively by those against the cuts, the prime minister had little option to reject its outcome then negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency and distributing coupons to retirees, the leader knew that it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras further wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
