In a newly released memoir, called Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on the turbulent era of Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's recollections, he selected the unorthodox economist Varoufakis to be his finance minister largely because of the latter's global profile along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, truthfully, more of a star rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras claims how Varoufakis had his own motives that included promoting Varoufakis's publications as well as experimenting with his economic models on the nation instead of truly advocating its economic stability.
Tsipras wrote how those negotiations to avoid bankruptcy became “not only a way to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously on the brink of exiting the single currency area.
On the line was both the country's destiny and the harsh austerity measures demanded in return for financial aid from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras was forced but to reject its outcome and agree to a bailout package from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts how his former ally demonstrated himself “unfit for an agreement that required complex and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hawks who were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
