Within his freshly published autobiography, named Ithaki, the ex- premier Alexis Tsipras spares no criticism as he examines that chaotic period during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's account, he appointed that unorthodox economist Varoufakis to be the finance minister mainly because of his international reputation and Varoufakis's “extremely attractive” abilities when it came to speaker.
“He was, actually, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief had his own agenda that included advancing his books as well as testing out his economic models using Greece rather than truly fighting for the country's financial survival.
He noted that those negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to exiting the single currency area.
On the line lay both the country's future and the punishing austerity policies required in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those excoriating bailout terms were subjected to a public vote, a move that threw Europe into deeper crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, the prime minister had little option to ignore the result and agree to a rescue deal with creditors which turned out to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and distributing coupons to pensioners, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive approach left him more and more alone among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This account of history has been met with fury along with stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet on the matter.
