Within his recently unveiled personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, he appointed that maverick economist Varoufakis as the treasury head primarily due to his worldwide fame along with Varoufakis's very persuasive skills as a speaker.
“He was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests how Varoufakis possessed a personal motives which included promoting his publications as well as testing out his own economic models using Greece rather than genuinely advocating the country's economic stability.
He noted how the talks to prevent bankruptcy were “not only a method to secure a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile discussions, the country came perilously on the brink of exiting the eurozone.
At stake was not only the country's future but also those punishing austerity policies demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the harsh conditions were subjected to a public vote, an action which threw the EU into a further existential crisis.
Although the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, the leader knew it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the book, the author concludes how Varoufakis had proved himself “unsuitable for a deal demanding complex and sensitive management.”
He further claimed how his aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
