In a recently unveiled personal account, called Ithaki, the ex- premier Alexis Tsipras pulls no punches while he reflects on that turbulent period during Greece's economic turmoil.
A Controversial Choice
In Tsipras's account, Tsipras chose the unorthodox economist Varoufakis as his treasury head largely because of the latter's worldwide fame and his very persuasive skills when it came to public orator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal motives which involved promoting Varoufakis's books and experimenting with his own theories on Greece instead of genuinely fighting for its economic stability.
He noted that those negotiations to avoid insolvency became “not only a way of achieving improved terms for the country. They were an experiment, an historic opportunity to prove the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to exiting the single currency area.
On the line lay not only Greece's future and the punishing austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were put to a popular referendum, a move which threw Europe into deeper crisis of identity.
Even though the referendum was won decisively by those against the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he relished his new role.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing coupons to retirees, the leader knew that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and delicate management.”
He also claimed that his confrontational approach left him more and more alone among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked fury and shock in some quarters, whereas the former minister has maintained a deafening silence on the matter.
