Within his recently unveiled memoir, called Ithaki, the ex- leader Alexis Tsipras spares no criticism while he examines that chaotic era during Greece's debt drama.
A Controversial Appointment
As per Tsipras's recollections, he selected that maverick economist Varoufakis to be the treasury head mainly because of the latter's worldwide fame and Varoufakis's very persuasive abilities as a speaker.
“He was, actually, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda that included advancing his publications and experimenting with his economic models on Greece instead of genuinely fighting for the country's financial survival.
He noted that the talks to prevent bankruptcy became “not only a method to secure improved terms for Greece. They became an experiment, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line was both the country's future but also the severe cutbacks required in return for financial aid from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those excoriating conditions were put to a public vote, an action which threw the EU into a further existential crisis.
Although the referendum was carried decisively by those against the cuts, the prime minister was forced to ignore the result and agree to a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a backup strategy involving creating a secondary currency and issuing coupons to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts that his former ally had proved himself to be “unfit for an agreement that required intricate and sensitive management.”
Tsipras also wrote that his confrontational approach left him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This account of events has provoked anger and stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
