In a freshly published personal account, called Ithaki, the former leader Tsipras does not hold back while he reflects on that turbulent era during Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, he selected the maverick economist Yanis Varoufakis to be his treasury head mainly because of his international reputation and Varoufakis's “extremely attractive” abilities as a communicator.
“He was, truthfully, more like a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis possessed his own agenda which involved advancing Varoufakis's books and testing out his economic models using Greece instead of genuinely fighting for the country's financial survival.
Tsipras wrote that the discussions to avoid bankruptcy became “not just a way to secure improved terms for the country. They were an experiment, an historic opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line was not only the country's future and the severe austerity policies required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, a move which threw Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister had little option but to reject its outcome then negotiate a rescue deal from creditors which turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency and distributing coupons to retirees, Tsipras said he realised it was the end and asked him: “Is this for real?”
Enduring Criticism
Within the memoir, Tsipras asserts that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The account of history has provoked fury and stunned disbelief among certain groups, while the former minister has so far maintained a deafening silence on the matter.
