In a recently unveiled memoir, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he revisits the turbulent era of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's recollections, he appointed that maverick economist Varoufakis as his finance minister primarily due to his international reputation along with Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis possessed his own motives which included advancing Varoufakis's books and experimenting with his own theories on the nation instead of truly advocating its economic stability.
He explained how the negotiations to avoid bankruptcy became “not just a method to secure a better deal for the country. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, the country came perilously close to leaving the single currency area.
At stake was both Greece's future but also those severe austerity measures required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into further crisis of identity.
Although the referendum was carried decisively by those who opposed austerity, the prime minister had little option to reject its outcome and agree to a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency and distributing vouchers to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive management.”
Tsipras also wrote that his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
