In a newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that turbulent period during Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, he selected the unorthodox academic Varoufakis as his treasury head primarily due to the latter's worldwide fame along with Varoufakis's “extremely attractive” abilities as a communicator.
“He was, actually, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how his finance chief had his own agenda which included promoting his publications as well as testing out his economic models on Greece instead of truly fighting for the country's economic stability.
Tsipras wrote that those talks to stave off insolvency became “not just a method to secure a better deal for the country. They were a test, a monumental chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of leaving the eurozone.
On the line lay not only Greece's destiny but also those severe cutbacks demanded in return for bailout funds by foreign lenders.
Failed Options
Efforts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by those against the cuts, Tsipras was forced but to reject its outcome then agree to a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to pensioners, the leader knew it was game over questioning him: “Is this for real?”
Enduring Criticism
In the book, the author asserts how Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and delicate management.”
He also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief among certain groups, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
