In a newly released memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he revisits the turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, Tsipras selected the maverick economist Yanis Varoufakis as the finance minister mainly because of his international reputation along with his “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more like a celebrity and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis had his own motives which included advancing his books and experimenting with his own economic models on the nation instead of truly advocating the country's economic stability.
Tsipras noted how those talks to avoid bankruptcy became “not just a method to secure improved terms for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
On the line lay not only Greece's destiny but also those harsh austerity policies required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, an action which plunged the EU into a further existential crisis.
Even though the referendum was carried resoundingly by voters who opposed the cuts, the prime minister was forced but to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a parallel currency and distributing coupons to retirees, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author concludes that his former ally had proved himself “unsuitable for a deal that required complex and delicate management.”
Tsipras further claimed that Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and helped hawks who were advocating Grexit.
This retelling of history has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
