In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits the chaotic era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, Tsipras chose that maverick academic Varoufakis as the finance minister primarily due to the latter's international reputation and Varoufakis's highly compelling skills as a communicator.
“He was, truthfully, more of a personality and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had his own agenda that included promoting Varoufakis's books as well as testing out his economic models using the nation rather than genuinely fighting for the country's economic stability.
He explained that the talks to avoid insolvency became “not just a method of achieving improved terms for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid volatile negotiations, the country came perilously on the brink of exiting the eurozone.
On the line was not only the country's future and the severe austerity measures demanded in exchange for rescue loans from international creditors.
Unsuccessful Options
Efforts to find funds elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a public vote, a move that threw Europe into a deeper crisis of identity.
Although the vote was won decisively by those who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan involving establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself “unfit for a deal that required complex and delicate handling.”
He also claimed how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This account of events has provoked fury along with shock in some quarters, while the former minister has so far kept a conspicuous quiet regarding these claims.
