Within his freshly published personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, Tsipras selected the unorthodox economist Varoufakis to be his finance minister mainly because of his international reputation and his highly compelling abilities as a speaker.
“He was, truthfully, more of a star rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis had his own agenda which included promoting his books as well as experimenting with his economic models using Greece rather than genuinely fighting for the country's economic stability.
He wrote how those discussions to avoid insolvency became “not only a way to secure a better deal for the country. They became a test, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece came dangerously close to leaving the single currency area.
At stake lay both the country's destiny but also the harsh cutbacks demanded in return for bailout funds by foreign lenders.
Failed Options
Attempts to secure funds from other sources, including a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were put to a public vote, a move that plunged Europe into deeper crisis of identity.
Although the vote was carried decisively by those who opposed austerity, the prime minister was forced to reject its outcome and negotiate a bailout package with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating Grexit.
The retelling of events has been met with fury along with stunned disbelief in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
