In a newly released personal account, called Ithaki, the former prime minister Alexis Tsipras does not hold back as he examines the turbulent period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he chose that unorthodox academic Varoufakis as his treasury head mainly due to his international reputation and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader claims how his finance chief had his own motives which included advancing Varoufakis's publications as well as experimenting with his own theories on the nation rather than genuinely advocating the country's economic stability.
He explained that those negotiations to stave off bankruptcy became “not just a method to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake was not only the country's destiny and the severe austerity policies required in return for financial aid from international creditors.
Failed Options
Efforts to secure funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were subjected to a popular referendum, an action that plunged the EU into further existential crisis.
Although the referendum was won resoundingly by those against the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, the leader knew that it was game over questioning him: “Are you serious?”
Enduring Criticism
Within the book, the author concludes how Varoufakis demonstrated himself to be “unfit for an agreement that required complex and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The account of history has been met with anger along with shock among certain groups, while the former minister has kept a deafening silence regarding these claims.
