In a recently unveiled personal account, titled Ithaki, the former prime minister Alexis Tsipras spares no criticism while he examines the turbulent era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he appointed the maverick economist Varoufakis to be his treasury head largely due to the latter's worldwide fame and his highly compelling abilities when it came to speaker.
“He was, truthfully, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had his own motives that included promoting his publications and testing out his own theories on Greece rather than truly advocating its economic stability.
Tsipras wrote that the talks to stave off insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, an historic chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid tense discussions, the country found itself perilously close to exiting the single currency area.
On the line was not only the country's future but also the harsh austerity policies demanded in return for financial aid from foreign lenders.
Failed Options
Attempts to secure financing from other sources, including an urgent plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a public vote, a move that threw the EU into a further crisis of identity.
Although the referendum was carried decisively by voters against austerity, the prime minister was forced to reject its outcome then negotiate a rescue deal from creditors which turned out to be even harsher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the book, the author asserts how Varoufakis had proved himself to be “unfit for an agreement that required intricate and sensitive management.”
Tsipras further wrote how his aggressive style left him more and more alone with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
