In a recently unveiled autobiography, called Ithaki, the former leader Tsipras does not hold back as he examines that turbulent period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, he chose the unorthodox academic Yanis Varoufakis as the treasury head primarily due to the latter's global profile along with his “extremely attractive” skills when it came to communicator.
“In reality, he was, actually, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests that Varoufakis had a personal motives that involved advancing Varoufakis's publications as well as experimenting with his own economic models on Greece instead of truly advocating the country's economic stability.
Tsipras explained that the talks to stave off insolvency became “not only a method to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
At stake was not only the country's destiny and the harsh austerity measures demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those punitive bailout terms were put to a popular referendum, an action that plunged the EU into a further existential crisis.
Even though the vote was won resoundingly by those against the cuts, Tsipras had little option to reject its outcome then negotiate a rescue deal with creditors which proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras further wrote that his aggressive approach left him more and more alone with colleagues, endangered the country, and helped hardliners who were pushing for Grexit.
This retelling of events has been met with anger and shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
