In a newly released autobiography, called Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that chaotic period of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis as the finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities when it came to communicator.
“He was, in reality, more like a personality rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims that his finance chief had a personal motives that involved promoting Varoufakis's publications and testing out his economic models using the nation instead of genuinely advocating the country's financial survival.
Tsipras explained that those discussions to stave off insolvency were “not just a method of achieving a better deal for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came dangerously on the brink of leaving the eurozone.
At stake lay both the country's destiny and the severe austerity policies required in exchange for rescue loans by international creditors.
Failed Alternatives
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action which plunged the EU into deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a rescue deal with creditors that turned out to be more severe.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
When the minister proposed a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts that his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive management.”
He also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hardliners that were pushing for Grexit.
This account of history has provoked anger and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
