In a newly released personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the turbulent era of Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's version, he chose the unorthodox economist Varoufakis to be the finance minister primarily due to his global profile and his highly compelling abilities as a speaker.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal motives that involved promoting his publications and experimenting with his theories using the nation instead of genuinely advocating the country's financial survival.
Tsipras wrote how those talks to prevent insolvency were “not only a way of achieving a better deal for the country. They were a test, an historic chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future but also the punishing cutbacks demanded in return for financial aid from foreign lenders.
Failed Options
Efforts to find financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
That summer, those excoriating bailout terms were put to a popular referendum, a move that plunged Europe into deeper existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan that included creating a secondary currency and issuing coupons to retirees, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
He further claimed that Varoufakis's aggressive approach made him more and more alone among peers, endangered the country, while assisted hardliners that were advocating Grexit.
The retelling of events has provoked anger and shock in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
