In a freshly published personal account, named Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that chaotic era of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's account, he chose the maverick economist Varoufakis as his treasury head primarily because of the latter's worldwide fame along with his highly compelling abilities when it came to communicator.
“He was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis had his own agenda which involved promoting Varoufakis's publications as well as experimenting with his own game theories on the nation rather than genuinely advocating the country's economic stability.
He explained how the discussions to stave off bankruptcy became “not only a method to secure improved terms for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously close to exiting the single currency area.
At stake was both the country's future and the severe austerity measures required in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to find funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action which plunged Europe into a further existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras had little option to reject its outcome then agree to a rescue deal from creditors that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency and distributing vouchers to retirees, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts how Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”
He also claimed how Varoufakis's confrontational approach made him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
