In a recently unveiled personal account, titled Ithaki, the former premier Alexis Tsipras spares no criticism as he revisits that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's account, Tsipras selected the unorthodox economist Varoufakis to be the finance minister mainly due to his international reputation and Varoufakis's very persuasive skills when it came to public orator.
“In reality, he was, actually, more of a star rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed his own agenda that included advancing his books and experimenting with his game theories using the nation instead of truly fighting for its economic stability.
He wrote that those discussions to stave off bankruptcy became “not only a way of achieving a better deal for Greece. They became a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
During volatile negotiations, Greece found itself perilously close to exiting the single currency area.
At stake lay not only Greece's destiny and the harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, including a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters against austerity, the prime minister had little option but to ignore the result then negotiate a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He also claimed how Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
