In a newly released autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits the chaotic period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, he selected that unorthodox economist Varoufakis as his finance minister mainly due to the latter's global profile along with Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, in reality, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had a personal motives which included advancing Varoufakis's books and testing out his theories using Greece rather than genuinely fighting for its economic stability.
Tsipras noted that those talks to avoid insolvency were “not just a method to secure improved terms for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
During rollercoaster negotiations, the country found itself perilously on the brink of leaving the single currency area.
At stake lay not only the country's future but also the severe cutbacks demanded in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were put to a popular referendum, a move which threw Europe into a further existential crisis.
Even though the referendum was won resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome and negotiate a bailout package with creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted media attention, who appeared on the front pages of publications globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author asserts how his former ally demonstrated himself “unfit for a deal that required intricate and sensitive handling.”
He further wrote that his aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with anger along with shock in some quarters, while the former minister has maintained a deafening silence on the matter.
