Within his newly released personal account, named Ithaki, the former premier Alexis Tsipras spares no criticism while he revisits that chaotic era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, he appointed that maverick economist Varoufakis to be the treasury head largely due to the latter's worldwide fame and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed a personal agenda which involved promoting his books as well as testing out his own economic models on the nation instead of truly advocating its financial survival.
Tsipras noted how the negotiations to stave off bankruptcy were “not just a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, the country found itself perilously on the brink of exiting the eurozone.
At stake lay not only Greece's destiny but also those punishing austerity measures required in return for financial aid by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those punitive conditions were put to a popular referendum, an action that threw Europe into further existential crisis.
Although the referendum was carried resoundingly by those against the cuts, Tsipras had little option to reject its outcome then negotiate a bailout package with foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency and issuing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras further claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
This retelling of events has provoked fury along with shock in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
