Within his newly released personal account, named Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that turbulent era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's account, he appointed that maverick academic Varoufakis as the finance minister largely because of his international reputation along with his “extremely attractive” abilities when it came to communicator.
“He was, actually, more like a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims how Varoufakis possessed a personal motives that included promoting his publications as well as testing out his own economic models using the nation instead of genuinely advocating its economic stability.
He noted how those discussions to stave off insolvency became “not only a method to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
On the line was not only the country's future and those harsh austerity policies demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were put to a popular referendum, an action which plunged the EU into deeper existential crisis.
Although the referendum was carried decisively by voters against the cuts, Tsipras had little option to ignore the result and agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included creating a parallel currency and issuing coupons to retirees, the leader knew that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, the author concludes how his former ally had proved himself to be “unsuitable for an agreement that required complex and sensitive management.”
He also claimed that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
This retelling of events has provoked anger and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
