Within his newly released personal account, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on the turbulent era of Greece's debt drama.
An Unconventional Appointment
In Tsipras's recollections, he selected that unorthodox academic Varoufakis as his finance minister largely due to his worldwide fame and his “extremely attractive” skills as a public orator.
“He was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges that his finance chief had a personal agenda that involved advancing Varoufakis's publications and testing out his own economic models using the nation instead of genuinely fighting for the country's financial survival.
He wrote how the negotiations to prevent bankruptcy were “not only a way of achieving a better deal for the country. They became a test, an historic opportunity to prove the validity of his ideas.”
Critical Talks
During volatile discussions, Greece found itself perilously close to exiting the eurozone.
On the line lay not only the country's destiny but also the punishing austerity measures required in return for rescue loans from foreign lenders.
Failed Options
Attempts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those punitive conditions were put to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters against austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy involving creating a secondary currency and issuing coupons to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement that required complex and delicate handling.”
He also wrote that his confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
