Within his freshly published personal account, titled Ithaki, the former leader Tsipras does not hold back while he revisits the turbulent period of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's recollections, Tsipras selected that maverick economist Yanis Varoufakis to be the treasury head mainly due to the latter's international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more of a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader claims how Varoufakis had his own motives that included promoting Varoufakis's books as well as testing out his theories using the nation instead of genuinely advocating its economic stability.
He noted that the talks to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future but also those punishing cutbacks required in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh bailout terms were put to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with creditors which proved to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, Tsipras asserts how his former ally had proved himself “unfit for a deal demanding complex and delicate handling.”
He further wrote how his confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
