Within his newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent period of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's account, he selected the unorthodox academic Varoufakis to be his finance minister primarily due to the latter's international reputation and Varoufakis's highly compelling abilities when it came to speaker.
“He was, in reality, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief had his own agenda which involved advancing Varoufakis's publications and testing out his game theories on the nation rather than truly advocating the country's economic stability.
He noted that the discussions to prevent bankruptcy became “not only a way of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came perilously on the brink of leaving the eurozone.
At stake was both the country's future but also those harsh austerity policies required in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to find financing elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those excoriating conditions were subjected to a popular referendum, a move which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by those against austerity, Tsipras had little option but to reject its outcome and negotiate a rescue deal from creditors that proved to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
