Within his recently unveiled memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, he appointed the unorthodox academic Varoufakis to be the treasury head primarily because of the latter's worldwide fame and his very persuasive abilities as a communicator.
“In reality, he was, actually, more like a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims how his finance chief possessed a personal agenda which included advancing Varoufakis's publications as well as testing out his own game theories on Greece rather than truly fighting for the country's financial survival.
Tsipras explained that those discussions to prevent bankruptcy became “not only a method of achieving improved terms for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line was both the country's future but also those harsh austerity policies demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to secure funds elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Although the vote was won decisively by voters who opposed austerity, the prime minister had little option to reject its outcome then agree to a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for an agreement demanding complex and delicate management.”
He further wrote that his confrontational style left him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
This account of history has provoked anger along with shock in some quarters, while the former minister has maintained a deafening silence on the matter.
