In a recently unveiled autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, Tsipras selected that unorthodox economist Varoufakis as his finance minister largely due to his international reputation along with his highly compelling skills when it came to public orator.
“He was, truthfully, more like a celebrity and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader alleges that Varoufakis had a personal motives which included promoting Varoufakis's publications and testing out his theories using Greece rather than genuinely advocating its economic stability.
He explained that the discussions to stave off insolvency were “not just a method of achieving improved terms for the country. They became a test, an historic opportunity to prove the validity of his theories.”
Critical Negotiations
During tense discussions, the country came perilously close to exiting the single currency area.
On the line lay not only Greece's future and the harsh austerity measures demanded in exchange for financial aid by international creditors.
Failed Options
Efforts to find financing from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move which plunged the EU into a further crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister was forced but to ignore the result and negotiate a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised it was the end and asked him: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also wrote how his aggressive style made him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked fury along with shock among certain groups, whereas the former minister has maintained a deafening silence on the matter.
