In a newly released personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's version, he appointed that unorthodox academic Varoufakis as his finance minister mainly due to the latter's international reputation along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras alleges that his finance chief possessed his own motives which involved promoting Varoufakis's publications as well as testing out his own economic models using the nation rather than truly fighting for its financial survival.
Tsipras explained how the negotiations to avoid bankruptcy became “not just a method to secure improved terms for Greece. They became a test, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, Greece came perilously on the brink of leaving the eurozone.
At stake lay not only Greece's future and the punishing austerity policies demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action which threw the EU into a further existential crisis.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy involving creating a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end questioning him: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts that Varoufakis had proved himself to be “unfit for an agreement that required intricate and delicate management.”
He also claimed how his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of events has been met with fury along with shock among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
