In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits the turbulent era of Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he appointed the maverick academic Varoufakis to be his treasury head mainly because of the latter's global profile along with Varoufakis's very persuasive abilities as a public orator.
“He was, in reality, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims that Varoufakis had a personal motives that included advancing his publications as well as experimenting with his theories using Greece rather than genuinely advocating its financial survival.
Tsipras explained how those negotiations to stave off insolvency were “not only a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
On the line was not only the country's destiny and those punishing austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, an action that threw the EU into deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option but to reject its outcome and agree to a bailout package from foreign lenders 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 the talks, the man who attracted publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing coupons to pensioners, the leader knew that it was the end questioning him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes that his former ally had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He further wrote that his aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The account of events has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.