In a newly released memoir, called Ithaki, the ex- leader Tsipras pulls no punches while he examines that turbulent era of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, he appointed that maverick economist Yanis Varoufakis to be the treasury head largely due to the latter's global profile and Varoufakis's highly compelling abilities as a communicator.
“He was, truthfully, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had a personal agenda that included advancing his books as well as experimenting with his theories on Greece instead of truly advocating the country's financial survival.
Tsipras noted that the discussions to prevent bankruptcy became “not only a way to secure improved terms for the country. They were a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both Greece's destiny and the severe cutbacks demanded in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a public vote, an action that threw Europe into deeper existential crisis.
Even though the vote was carried decisively by those against the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal from creditors that turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive handling.”
He also claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
This account of events has been met with anger along with shock among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
