Within his newly released memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's account, Tsipras appointed that maverick academic Varoufakis as his finance minister primarily because of his worldwide fame along with Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims that Varoufakis had a personal agenda which included advancing Varoufakis's publications and experimenting with his game theories using the nation rather than genuinely advocating its economic stability.
Tsipras noted that the discussions to avoid insolvency were “not just a method to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of his ideas.”
Critical Negotiations
During rollercoaster negotiations, Greece found itself dangerously on the brink of exiting the eurozone.
At stake lay both the country's future but also those punishing austerity policies demanded in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were put to a public vote, an action which plunged the EU into a deeper crisis of identity.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, Tsipras said he realised it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis had proved himself “unfit for a deal that required intricate and sensitive management.”
He also claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating Grexit.
The account of history has provoked fury along with shock in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
