Within his freshly published personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that chaotic era during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, he chose the maverick economist Varoufakis to be the finance minister mainly due to his worldwide fame and his highly compelling skills as a communicator.
“In reality, he was, truthfully, more of a personality and less of an economist,” stated Tsipras.
Clashing Priorities
Tsipras alleges that his finance chief had a personal motives which involved promoting his books and experimenting with his own theories on the nation instead of genuinely fighting for its financial survival.
He noted that the talks to avoid bankruptcy became “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came perilously on the brink of exiting the single currency area.
On the line was both the country's destiny but also the punishing cutbacks demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, such as an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, an action which plunged Europe into a deeper crisis of identity.
Even though the vote was carried resoundingly by those against the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal from creditors that turned out to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also claimed that his confrontational style left him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The account of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
