In a newly released personal account, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism while he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, he chose the unorthodox academic Varoufakis to be the treasury head mainly due to his global profile and his “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests how his finance chief possessed a personal motives which involved promoting his books as well as testing out his own theories using Greece rather than truly advocating the country's economic stability.
He explained that those talks to prevent insolvency were “not just a way to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself perilously close to leaving the eurozone.
At stake was both the country's destiny and those harsh austerity policies required in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were subjected to a public vote, an action that plunged Europe into deeper existential crisis.
Although the vote was won decisively by voters who opposed austerity, the prime minister had little option but to reject its outcome then agree to a rescue deal from creditors which turned out to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted media attention, who graced the covers of publications globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author concludes how his former ally had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras also claimed that Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
