Within his freshly published memoir, named Ithaki, the former leader Tsipras pulls no punches as he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Choice
In Tsipras's recollections, Tsipras selected that maverick economist Yanis Varoufakis to be the treasury head largely due to the latter's worldwide fame and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more like a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how Varoufakis had his own motives which included advancing Varoufakis's books as well as testing out his economic models on Greece instead of truly advocating the country's financial survival.
He wrote how the negotiations to stave off insolvency were “not only a way to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, the country found itself dangerously on the brink of exiting the eurozone.
At stake was both the country's future but also those harsh austerity measures required in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, a move which threw Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, Tsipras knew that it was game over and asked him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
He further claimed that his aggressive style left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This account of events has been met with anger along with shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
