In a recently unveiled memoir, called Ithaki, the ex- leader Alexis Tsipras does not hold back while he revisits that chaotic era of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's account, Tsipras chose that maverick economist Varoufakis as the treasury head mainly because of the latter's global profile and his very persuasive abilities as a speaker.
“He was, actually, more of a star rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own agenda that included promoting Varoufakis's books as well as experimenting with his own economic models using the nation rather than truly fighting for the country's financial survival.
He noted how those discussions to avoid bankruptcy were “not only a way of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
Amid volatile discussions, the country came dangerously close to exiting the eurozone.
On the line lay both the country's destiny and those harsh austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, the harsh bailout terms were put to a popular referendum, a move which threw the EU into a deeper existential crisis.
Although the vote was carried resoundingly by those against austerity, Tsipras was forced but to ignore the result then negotiate a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who drew media attention, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes that Varoufakis demonstrated himself to be “unfit for an agreement demanding complex and sensitive handling.”
He also claimed that his confrontational style left him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
The account of history has provoked anger and stunned disbelief in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
