Within his freshly published memoir, titled Ithaki, the former prime minister Alexis Tsipras does not hold back as he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, he appointed that unorthodox economist Varoufakis as the finance minister largely due to the latter's international reputation along with Varoufakis's very persuasive skills as a communicator.
“He was, in reality, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own motives which included promoting Varoufakis's publications and testing out his economic models on the nation rather than genuinely fighting for the country's economic stability.
He wrote that those talks to avoid insolvency became “not only a way of achieving a better deal for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
Critical Talks
During rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both Greece's destiny and the severe cutbacks demanded in exchange for bailout funds from foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh bailout terms were put to a public vote, a move which plunged the EU into deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
When the minister proposed a contingency plan that included creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, the author concludes that Varoufakis had proved himself “unsuitable for a deal that required complex and delicate management.”
Tsipras also wrote how his confrontational approach made him more and more alone with colleagues, endangered the country, and assisted hawks that were advocating Grexit.
The account of history has been met with fury along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
