In a newly released memoir, named Ithaki, the ex- premier Alexis Tsipras does not hold back while he examines that chaotic era of Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras appointed the maverick economist Varoufakis to be his treasury head mainly because of his worldwide fame and Varoufakis's “extremely attractive” abilities as a communicator.
“He was, actually, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal motives which included advancing his publications as well as experimenting with his theories on Greece rather than genuinely fighting for the country's financial survival.
Tsipras explained that the talks to prevent insolvency were “not only a method of achieving improved terms for the country. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of leaving the eurozone.
On the line lay not only the country's destiny but also those punishing austerity policies demanded in return for financial aid by foreign lenders.
Failed Options
Efforts to find funds elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the punitive conditions were put to a public vote, a move that threw Europe into a further existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras also claimed how his aggressive style left him increasingly isolated among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The retelling of history has provoked fury and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
