Within his newly released personal account, titled Ithaki, the former premier Alexis Tsipras spares no criticism as he revisits the chaotic period of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's version, he selected that unorthodox economist Varoufakis to be the finance minister primarily because of his worldwide fame along with Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras claims how Varoufakis had a personal motives that included promoting Varoufakis's publications as well as experimenting with his economic models using the nation rather than truly fighting for the country's financial survival.
He explained that those discussions to stave off bankruptcy became “not only a way to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country found itself perilously on the brink of leaving the single currency area.
At stake was both the country's destiny but also the severe austerity measures demanded in return for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, a move which plunged the EU into further crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal from foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
He further claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating Grexit.
The account of events has been met with anger and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
