In a recently unveiled personal account, called Ithaki, the former leader Tsipras pulls no punches while he examines that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, he selected the unorthodox economist Yanis Varoufakis as the treasury head mainly due to his worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief had his own motives that included promoting Varoufakis's books and testing out his own economic models using the nation rather than genuinely fighting for its economic stability.
He wrote how the discussions to prevent bankruptcy were “not only a method to secure a better deal for the country. They were a test, an historic chance to prove the truth of his theories.”
High-Stakes Talks
During tense discussions, the country came dangerously close to exiting the single currency area.
At stake lay both Greece's destiny and those harsh austerity policies demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Attempts to find financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, a move which plunged the EU into further existential crisis.
Even though the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package with foreign lenders that proved to be even harsher.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the front pages of publications the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency and issuing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
This account of history has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
