In a freshly published memoir, named Ithaki, the former prime minister Tsipras does not hold back while he examines that turbulent era during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, he selected that unorthodox economist Yanis Varoufakis to be the treasury head largely due to the latter's international reputation along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Clashing Agendas
The former leader claims that Varoufakis had his own agenda which involved advancing Varoufakis's publications and experimenting with his theories on Greece instead of truly fighting for the country's economic stability.
He explained how those negotiations to stave off bankruptcy became “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself dangerously close to exiting the single currency area.
At stake lay both Greece's destiny and the harsh cutbacks required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, a move that threw the EU into a deeper crisis of identity.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras had little option to ignore the result then negotiate a rescue deal from creditors that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras also wrote how Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, while helped hardliners that were advocating Grexit.
The account of events has been met with fury along with shock among certain groups, while the former minister has kept a conspicuous quiet on the matter.
