In a freshly published personal account, titled Ithaki, the former prime minister Alexis Tsipras pulls no punches as he revisits the turbulent period during Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's version, he chose the unorthodox economist Varoufakis to be the finance minister primarily because of the latter's global profile and his highly compelling abilities as a speaker.
“He was, in reality, more like a star and less of an economist,” stated Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief possessed his own agenda that involved promoting his publications as well as testing out his own economic models on Greece rather than truly advocating its financial survival.
Tsipras wrote that those negotiations to stave off bankruptcy became “not just a method of achieving improved terms for Greece. They were an experiment, a monumental chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake was both Greece's future but also those punishing austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those excoriating conditions were subjected to a popular referendum, an action that threw the EU into deeper existential crisis.
Although the vote was carried resoundingly by those against the cuts, Tsipras was forced but to reject its outcome and negotiate a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Are you serious?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal that required complex and delicate management.”
Tsipras also wrote how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with stunned disbelief among certain groups, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
