In a newly released personal account, named Ithaki, the ex- premier Alexis Tsipras spares no criticism as he reflects on the chaotic era during Greece's debt drama.
A Controversial Choice
As per the ex-PM's version, he selected the maverick academic Varoufakis as the treasury head mainly because of the latter's international reputation and Varoufakis's very persuasive abilities as a communicator.
“He was, in reality, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how his finance chief had his own agenda which included advancing his books as well as testing out his own economic models on the nation rather than genuinely advocating the country's financial survival.
He wrote how the negotiations to stave off insolvency were “not only a way of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
On the line lay not only Greece's future and those severe austerity policies required in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were put to a popular referendum, a move which threw the EU into deeper existential crisis.
Although the vote was carried resoundingly by those against the cuts, the prime minister had little option but to reject its outcome and agree to a bailout package with creditors which proved to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who attracted media attention, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included creating a parallel currency as well as distributing coupons to pensioners, the leader knew it was game over questioning him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive management.”
He also claimed how Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
The account of history has provoked fury along with shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
