In a newly released memoir, named Ithaki, the former leader Tsipras does not hold back while he reflects on that chaotic era of Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he chose the maverick academic Yanis Varoufakis to be the treasury head largely due to his global profile and his highly compelling skills as a public orator.
“He was, actually, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader claims that his finance chief possessed a personal agenda which included promoting Varoufakis's books as well as experimenting with his economic models on the nation instead of genuinely advocating the country's economic stability.
He explained that the discussions to avoid insolvency were “not just a way to secure a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, the country found itself dangerously close to exiting the single currency area.
On the line was not only Greece's destiny but also the punishing austerity policies demanded in exchange for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those harsh bailout terms were put to a public vote, a move which plunged Europe into a further crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced to ignore the result then agree to a rescue deal with creditors which proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency and issuing coupons to pensioners, the leader said he realised that it was game over questioning him: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
Tsipras also wrote how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
