Within his freshly published memoir, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits the turbulent period during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras appointed the maverick economist Yanis Varoufakis as the finance minister primarily because of the latter's international reputation and Varoufakis's very persuasive abilities as a public orator.
“He was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had his own agenda which included promoting his publications as well as testing out his economic models using the nation instead of truly fighting for its financial survival.
Tsipras explained that the negotiations to prevent insolvency were “not just a way to secure a better deal for Greece. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, Greece found itself perilously close to exiting the single currency area.
On the line was not only Greece's future but also those severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a public vote, a move which plunged Europe into a deeper crisis of identity.
Even though the referendum was won decisively by those against austerity, Tsipras was forced to ignore the result and negotiate a bailout package with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras also claimed how Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, while helped hardliners who were advocating Grexit.
The account of events has been met with fury along with shock in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
