Within his recently unveiled personal account, called Ithaki, the former leader Tsipras pulls no punches as he reflects on that turbulent era of Greece's debt drama.
A Controversial Choice
According to the ex-PM's version, Tsipras appointed that maverick academic Yanis Varoufakis as his finance minister largely due to the latter's global profile along with his highly compelling abilities as a communicator.
“He was, in reality, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis possessed his own motives that involved advancing his publications as well as testing out his theories on the nation instead of truly advocating its financial survival.
Tsipras wrote that those negotiations to avoid insolvency became “not just a method of achieving a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country came perilously close to exiting the single currency area.
At stake lay both the country's future but also the harsh cutbacks required in return for rescue loans from international creditors.
Failed Options
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those punitive conditions were subjected to a public vote, a move which plunged Europe into further existential crisis.
Even though the referendum was won resoundingly by those against the cuts, Tsipras had little option to ignore the result and agree to a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a contingency plan involving creating a parallel currency and issuing vouchers to retirees, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, the author concludes that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and delicate handling.”
Tsipras also wrote that his confrontational approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The account of events has provoked fury along with shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
