In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back while he examines that turbulent era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras selected that maverick academic Varoufakis to be his treasury head primarily because of his worldwide fame along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis possessed a personal motives that involved promoting his books and testing out his own theories using Greece rather than truly fighting for its economic stability.
Tsipras wrote how the discussions to prevent bankruptcy were “not only a method to secure a better deal for Greece. They were an experiment, a monumental chance to prove the validity of his ideas.”
Critical Talks
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
On the line lay both the country's destiny but also those harsh cutbacks required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those punitive conditions were subjected to a public vote, a move that plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal from foreign lenders which turned out to be tougher.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who drew publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, Tsipras knew that it was the end questioning him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate management.”
Tsipras further claimed that Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.