In a newly released memoir, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he examines that chaotic era of Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's account, Tsipras appointed the unorthodox economist Varoufakis as the finance minister primarily due to his global profile along with Varoufakis's “extremely attractive” skills when it came to speaker.
“He was, truthfully, more like a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief had his own motives that included promoting Varoufakis's books and testing out his game theories on Greece rather than genuinely advocating its financial survival.
He noted that the discussions to avoid bankruptcy were “not just a way to secure a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny but also the harsh austerity policies demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were subjected to a public vote, a move which threw the EU into deeper crisis of identity.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the man who drew publicity, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan involving creating a secondary currency as well as issuing coupons to pensioners, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes that his former ally demonstrated himself “unfit for a deal demanding intricate and delicate management.”
He also claimed that his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
The retelling of history has been met with anger along with shock in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
