In a newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic period during Greece's financial crisis.
A Controversial Choice
In Tsipras's account, Tsipras appointed the unorthodox economist Varoufakis to be his finance minister mainly due to his international reputation and Varoufakis's very persuasive abilities as a speaker.
“He was, in reality, more of a star rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief had his own agenda which included promoting his books as well as testing out his own theories using the nation instead of truly fighting for the country's financial survival.
Tsipras wrote how those negotiations to prevent insolvency were “not only a method of achieving improved terms for the country. They were a test, an historic chance to prove the validity of his economic theories.”
High-Stakes Talks
During tense negotiations, the country found itself perilously on the brink of leaving the single currency area.
At stake was not only the country's destiny and the harsh cutbacks demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that plunged the EU into deeper existential crisis.
Even though the referendum was won decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome then agree to a bailout package with creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author asserts that his former ally had proved himself “unfit for an agreement demanding complex and delicate management.”
Tsipras also wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for Grexit.
The account of events has provoked anger and stunned disbelief among certain groups, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
