In a freshly published personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's account, Tsipras selected that unorthodox economist Varoufakis to be the finance minister mainly because of his worldwide fame and his highly compelling abilities when it came to public orator.
“In reality, he was, actually, more like a star and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests how Varoufakis possessed a personal motives which included advancing Varoufakis's publications as well as experimenting with his own economic models using the nation rather than genuinely advocating its financial survival.
He noted how the negotiations to prevent bankruptcy were “not just a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid volatile negotiations, Greece found itself perilously close to leaving the eurozone.
At stake lay both the country's destiny but also the harsh cutbacks required in exchange for rescue loans from foreign lenders.
Failed Options
Efforts to find financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the punitive bailout terms were subjected to a public vote, a move that threw Europe into further existential crisis.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
Tsipras further claimed how his confrontational approach left him more and more alone with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
The account of events has provoked anger along with shock among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
