In a freshly published personal account, called Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on the turbulent period of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, he selected the unorthodox academic Varoufakis as the finance minister primarily because of the latter's worldwide fame along with his very persuasive skills as a communicator.
“He was, actually, more of a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal motives which included promoting Varoufakis's publications as well as experimenting with his own game theories on the nation rather than truly fighting for the country's economic stability.
Tsipras noted that those negotiations to avoid bankruptcy were “not just a way of achieving a better deal for the country. They became an experiment, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay both Greece's future and those punishing austerity policies demanded in return for bailout funds from international creditors.
Failed Options
Efforts to find financing elsewhere, such as an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those excoriating conditions were put to a popular referendum, a move which plunged the EU into a deeper existential crisis.
Although the referendum was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome then agree to a bailout package with foreign lenders which proved to be tougher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, the leader said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate handling.”
He also claimed how his aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of history has provoked fury along with shock in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
