Within his recently unveiled autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, he selected that maverick economist Varoufakis to be the finance minister largely due to the latter's global profile and his highly compelling skills as a public orator.
“In reality, he was, in reality, more of a star rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief possessed a personal motives which involved promoting his publications as well as testing out his theories using Greece rather than genuinely advocating its financial survival.
Tsipras explained how those talks to avoid insolvency were “not only a way of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the validity of Varoufakis's theories.”
Critical Talks
Amid rollercoaster discussions, Greece found itself perilously close to leaving the single currency area.
At stake was both the country's destiny and those harsh austerity policies required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, an action that plunged the EU into further crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, Tsipras was forced to ignore the result then negotiate a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, the author asserts how his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras further wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of events has provoked anger along with stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
