In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines that turbulent era of Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, Tsipras appointed the maverick economist Varoufakis to be the finance minister mainly because of the latter's international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more of a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how Varoufakis had a personal agenda that involved advancing Varoufakis's books and testing out his own economic models using Greece instead of truly fighting for the country's economic stability.
Tsipras noted how those talks to stave off insolvency were “not only a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid tense negotiations, Greece came perilously close to exiting the single currency area.
At stake was both Greece's destiny and those punishing austerity measures demanded in return for rescue loans from international creditors.
Failed Options
Attempts to find financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh conditions were put to a public vote, a move which threw the EU into deeper existential crisis.
Even though the vote was carried decisively by those who opposed austerity, Tsipras was forced but to reject its outcome then agree to a rescue deal from foreign lenders which proved to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and distributing vouchers to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras also claimed that his aggressive approach made him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
The retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
