Within his recently unveiled memoir, titled Ithaki, the former prime minister Alexis Tsipras does not hold back while he examines that turbulent era of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's version, Tsipras chose the unorthodox economist Varoufakis as the finance minister primarily due to his global profile along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis possessed a personal agenda that involved promoting his books as well as testing out his own economic models on the nation instead of genuinely advocating its financial survival.
Tsipras wrote that those negotiations to avoid bankruptcy became “not just a method to secure improved terms for the country. They were a test, an historic opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously close to leaving the eurozone.
At stake was not only Greece's future but also the harsh austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, a move which threw the EU into a further crisis of identity.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from creditors that proved to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as issuing coupons to pensioners, the leader knew that it was the end questioning him: “Are you serious?”
Enduring Criticism
In the book, the author concludes how his former ally had proved himself “unsuitable for a deal demanding complex and delicate management.”
He also wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
This account of events has provoked fury and shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
