In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's recollections, he chose the unorthodox economist Varoufakis to be his finance minister primarily due to his international reputation and Varoufakis's highly compelling abilities when it came to speaker.
“He was, truthfully, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Priorities
The former leader suggests that his finance chief had his own motives that included advancing Varoufakis's books and testing out his game theories on Greece instead of truly fighting for the country's financial survival.
He explained how those discussions to avoid insolvency became “not just a way of achieving a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's future and the punishing austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by voters who opposed austerity, Tsipras was forced to ignore the result then agree to a rescue deal from creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras also claimed how his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The account of history has been met with anger and shock among certain groups, whereas the former minister has so far maintained a deafening silence regarding these claims.
