In a recently unveiled memoir, named Ithaki, the former prime minister Alexis Tsipras does not hold back as he revisits the turbulent era during Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras chose the maverick economist Varoufakis to be his treasury head largely because of the latter's international reputation along with his highly compelling skills as a speaker.
“He was, truthfully, more like a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had his own motives which involved promoting Varoufakis's publications as well as experimenting with his own theories using Greece rather than truly advocating the country's economic stability.
He noted how those talks to stave off insolvency were “not only a method to secure improved terms for the country. They were an experiment, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, Greece came perilously close to leaving the eurozone.
On the line was both Greece's future and the harsh austerity measures required in exchange for financial aid from international creditors.
Failed Options
Attempts to secure funds from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the excoriating bailout terms were subjected to a popular referendum, an action that threw Europe into further existential crisis.
Although the referendum was won resoundingly by those against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal from foreign lenders which turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and issuing coupons to retirees, the leader knew that it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
The retelling of history has provoked fury and shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
