In a recently unveiled personal account, named Ithaki, the ex- prime minister Alexis Tsipras spares no criticism while he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis to be the finance minister mainly due to his worldwide fame and Varoufakis's very persuasive abilities as a communicator.
“He was, actually, more of a personality and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had his own motives that involved advancing Varoufakis's publications and experimenting with his economic models using Greece instead of genuinely fighting for the country's financial survival.
He wrote that the negotiations to prevent bankruptcy became “not only a method of achieving a better deal for the country. They were a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile discussions, Greece found itself perilously close to exiting the single currency area.
At stake was not only the country's destiny and the severe cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, including a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those punitive conditions were put to a public vote, a move which plunged the EU into a deeper crisis of identity.
Although the referendum was won decisively by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal with creditors which proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency and issuing coupons to pensioners, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also claimed that his aggressive style made him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This retelling of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
