In a recently unveiled personal account, titled Ithaki, the ex- premier Tsipras pulls no punches as he reflects on that turbulent era during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, Tsipras selected that maverick academic Yanis Varoufakis as his finance minister primarily due to his global profile along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, truthfully, more like a star rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed his own motives which included promoting Varoufakis's books as well as testing out his own theories on Greece rather than genuinely advocating its economic stability.
Tsipras wrote that the negotiations to stave off bankruptcy became “not just a way of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
During volatile negotiations, Greece came dangerously close to leaving the single currency area.
On the line was both the country's future and the severe cutbacks demanded in return for financial aid from foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, an action which threw the EU into further existential crisis.
Even though the referendum was won resoundingly by voters against austerity, the prime minister was forced to ignore the result then agree to a bailout package with creditors which proved to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan that included establishing a secondary currency and distributing coupons to retirees, the leader knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally had proved himself “unsuitable for a deal that required complex and delicate handling.”
He also claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
