In a freshly published memoir, titled Ithaki, the ex- premier Tsipras does not hold back while he reflects on that turbulent period of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected that maverick economist Yanis Varoufakis as his treasury head largely because of the latter's worldwide fame and Varoufakis's highly compelling abilities when it came to communicator.
“He was, actually, more of a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that his finance chief possessed his own motives that included promoting his publications as well as testing out his own economic models using the nation rather than truly fighting for the country's financial survival.
Tsipras noted how the negotiations to avoid insolvency were “not just a way to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Talks
During tense negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was both Greece's destiny but also the harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a public vote, a move which plunged Europe into a further existential crisis.
Even though the vote was carried resoundingly by those against the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal from creditors which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for a deal that required complex and sensitive handling.”
He further claimed that Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, while the former minister has so far kept a deafening silence on the matter.
