Within his freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that chaotic period during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's version, Tsipras appointed the unorthodox economist Varoufakis as the treasury head largely due to his worldwide fame along with his very persuasive skills as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras claims how his finance chief possessed his own motives that included promoting Varoufakis's publications and testing out his theories on the nation instead of truly advocating its economic stability.
Tsipras wrote that the negotiations to stave off insolvency were “not only a method to secure a better deal for the country. They became a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself perilously close to leaving the single currency area.
On the line lay not only the country's destiny and those severe cutbacks required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the harsh conditions were put to a public vote, a move that threw Europe into further crisis of identity.
Although the vote was won resoundingly by those against austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package with creditors which proved to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a contingency plan involving creating a secondary currency and distributing vouchers to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras concludes that his former ally had proved himself to be “unsuitable for a deal demanding complex and sensitive management.”
He further wrote how Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, while assisted hardliners that were advocating a Greek exit from the euro.
The account of events has provoked fury along with shock among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
