In a newly released personal account, named Ithaki, the ex- premier Alexis Tsipras does not hold back as he revisits that turbulent era of Greece's debt drama.
A Controversial Appointment
In the ex-PM's version, he appointed the maverick academic Varoufakis as his finance minister largely due to his worldwide fame and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims how his finance chief possessed a personal motives that involved advancing Varoufakis's publications and experimenting with his economic models on the nation instead of genuinely fighting for the country's financial survival.
He wrote that the talks to avoid bankruptcy became “not just a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
Amid volatile discussions, Greece came perilously on the brink of exiting the eurozone.
On the line was not only Greece's destiny but also those punishing austerity measures demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, those punitive conditions were subjected to a popular referendum, an action that plunged the EU into a further existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister had little option to ignore the result then negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan involving establishing a secondary currency as well as distributing coupons to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras further wrote that Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
The account of events has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
