In a recently unveiled personal account, called Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that turbulent period of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, he appointed that unorthodox academic Varoufakis as the finance minister primarily due to his international reputation and his “extremely attractive” abilities as a speaker.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had his own motives which included promoting Varoufakis's publications and experimenting with his game theories using the nation instead of truly advocating its economic stability.
Tsipras explained that those negotiations to avoid insolvency were “not only a way of achieving improved terms for the country. They became a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, the country came dangerously on the brink of leaving the eurozone.
On the line was not only the country's future and the severe cutbacks demanded in return for rescue loans from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by those against the cuts, the prime minister had little option to ignore the result then agree to a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, the author concludes that Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras also wrote how his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for Grexit.
The account of events has provoked fury and shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
