In a newly released personal account, titled Ithaki, the former premier Alexis Tsipras spares no criticism as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, he appointed the maverick economist Varoufakis as the finance minister mainly because of the latter's global profile along with Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, actually, more of a personality rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis possessed a personal motives that included promoting Varoufakis's publications and experimenting with his game theories using the nation rather than genuinely advocating the country's financial survival.
Tsipras explained how the talks to stave off insolvency became “not only a method to secure improved terms for Greece. They were a test, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During tense discussions, the country found itself perilously close to exiting the single currency area.
At stake was not only Greece's future but also the harsh austerity measures required in return for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating conditions were subjected to a popular referendum, a move that plunged Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal from creditors that proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan involving establishing a secondary currency and issuing vouchers to retirees, the leader knew it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate handling.”
He also claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hawks that were advocating Grexit.
The retelling of history has provoked anger along with stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
