In a freshly published memoir, named Ithaki, the ex- premier Alexis Tsipras spares no criticism as he examines the turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, Tsipras chose the unorthodox economist Varoufakis to be the treasury head mainly because of his global profile and his very persuasive abilities as a public orator.
“In reality, he was, in reality, more like a star rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader claims how Varoufakis had a personal motives that included promoting Varoufakis's books and experimenting with his own economic models using Greece rather than truly fighting for its financial survival.
He noted that those negotiations to avoid bankruptcy were “not only a way to secure improved terms for Greece. They were an experiment, a monumental chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously close to exiting the eurozone.
On the line was not only Greece's future and those harsh cutbacks required in exchange for bailout funds by foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that threw the EU into a deeper existential crisis.
Even though the referendum was won decisively by those against the cuts, the prime minister was forced to reject its outcome and agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency and distributing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He further wrote that his confrontational style left him more and more alone with colleagues, endangered the country, and helped hawks who were advocating Grexit.
This retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has maintained a conspicuous quiet on the matter.
