Within his newly released memoir, titled Ithaki, the former premier Tsipras pulls no punches as he revisits the turbulent era of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, Tsipras appointed that unorthodox economist Yanis Varoufakis as the treasury head primarily because of the latter's worldwide fame and his highly compelling skills as a communicator.
“In reality, he was, in reality, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief had his own agenda which included promoting his publications and testing out his economic models using Greece rather than truly advocating the country's financial survival.
Tsipras wrote that those discussions to avoid insolvency became “not only a method to secure a better deal for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself dangerously on the brink of exiting the eurozone.
On the line was both the country's future but also the punishing austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including a desperate plea to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive conditions were put to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by voters who opposed austerity, the prime minister had little option but to ignore the result then agree to a bailout package from foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the covers of publications the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy that included creating a parallel currency and issuing coupons to pensioners, the leader knew that it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and delicate handling.”
He further claimed that Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
This account of events has provoked anger and stunned disbelief among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
