In a newly released memoir, named Ithaki, the former leader Alexis Tsipras spares no criticism while he revisits that turbulent era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he selected the maverick economist Varoufakis as his finance minister primarily because of his global profile along with his very persuasive abilities as a communicator.
“He was, truthfully, more like a star rather than an economist,” wrote Tsipras.
Clashing Priorities
The former leader alleges how his finance chief possessed his own agenda which involved promoting his publications and experimenting with his theories using the nation rather than truly advocating its economic stability.
Tsipras wrote how the talks to stave off bankruptcy were “not only a way of achieving improved terms for the country. They became a test, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, Greece found itself dangerously on the brink of leaving the eurozone.
On the line lay both the country's future but also the punishing austerity policies demanded in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which plunged Europe into a further existential crisis.
Although the vote was won resoundingly by those against austerity, Tsipras had little option to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who drew media attention, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing coupons to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and sensitive management.”
Tsipras also claimed that his confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
