Within his newly released autobiography, named Ithaki, the ex- premier Tsipras pulls no punches as he examines the turbulent period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, he appointed the maverick economist Yanis Varoufakis as his finance minister mainly because of the latter's global profile and Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, truthfully, more like a star and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how his finance chief had his own motives which included promoting Varoufakis's publications and testing out his theories using Greece rather than genuinely advocating the country's financial survival.
He noted how the talks to stave off insolvency were “not just a way to secure a better deal for Greece. They became a test, an historic chance to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to exiting the eurozone.
At stake lay not only Greece's destiny but also the harsh cutbacks required in exchange for bailout funds by foreign lenders.
Failed Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that plunged Europe into further existential crisis.
Although the referendum was carried decisively by voters against the cuts, the prime minister was forced but to reject its outcome then negotiate a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The account of events has provoked fury along with shock in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.