In a newly released personal account, titled Ithaki, the former leader Tsipras spares no criticism as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's version, he selected the maverick academic Yanis Varoufakis to be his finance minister mainly due to the latter's global profile along with Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more of a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief possessed his own agenda which involved advancing his publications and experimenting with his own economic models using the nation rather than truly advocating its financial survival.
Tsipras explained how the discussions to stave off insolvency became “not just a method of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country found itself perilously close to exiting the eurozone.
On the line lay not only the country's future and those harsh cutbacks required in exchange for financial aid from international creditors.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, the harsh conditions were put to a popular referendum, a move which plunged the EU into a deeper existential crisis.
Although the referendum was won decisively by those who opposed the cuts, the prime minister had little option but to ignore the result then agree to a bailout package with foreign lenders which turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author asserts that Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate management.”
Tsipras also claimed that his aggressive style made him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
This account of events has provoked anger along with stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
