In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he reflects on the turbulent era during Greece's financial crisis.
A Controversial Appointment
In the ex-PM's account, he appointed that maverick economist Varoufakis as his finance minister primarily due to the latter's global profile along with his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a personality rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief possessed his own motives which included promoting his publications and testing out his own game theories using Greece rather than genuinely advocating its economic stability.
He noted that those negotiations to prevent bankruptcy became “not just a way to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Talks
Amid tense discussions, Greece came dangerously close to exiting the eurozone.
At stake was not only Greece's destiny and the punishing austerity policies required in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were put to a public vote, an action that plunged the EU into a further existential crisis.
Although the referendum was won resoundingly by voters who opposed austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised it was game over and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for a deal demanding complex and sensitive handling.”
He also wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
