In a newly released memoir, named Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on the chaotic era during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, he appointed that unorthodox academic Varoufakis as his treasury head primarily due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief had his own motives that included advancing his publications as well as testing out his theories using Greece rather than genuinely fighting for its financial survival.
Tsipras explained that those talks to stave off insolvency became “not only a way of achieving improved terms for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country came dangerously on the brink of leaving the eurozone.
On the line lay both the country's future but also the punishing austerity measures demanded in exchange for rescue loans from foreign lenders.
Failed Options
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
That summer, the excoriating conditions were subjected to a popular referendum, a move that plunged Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by those against austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package from creditors that turned out to be more severe.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the covers of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts how Varoufakis had proved himself to be “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras further claimed that his aggressive style left him more and more alone among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury and shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
