Within his newly released personal account, named Ithaki, the former prime minister Alexis Tsipras spares no criticism as he examines that chaotic era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras selected the unorthodox academic Varoufakis to be the finance minister primarily because of the latter's international reputation and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” stated Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had his own motives that included promoting his books and experimenting with his theories using Greece instead of genuinely advocating its financial survival.
He explained how those talks to prevent insolvency were “not just a method to secure a better deal for Greece. They became an experiment, a monumental chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake lay not only the country's future and the harsh cutbacks required in return for bailout funds by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, an action which plunged Europe into a deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal from foreign lenders that turned out to be tougher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving creating a secondary currency as well as distributing vouchers to pensioners, the leader knew that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive handling.”
He further claimed that his aggressive style left him more and more alone among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
The account of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
