In a newly released memoir, titled Ithaki, the former leader Tsipras pulls no punches while he reflects on that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's account, Tsipras selected that maverick academic Yanis Varoufakis to be his finance minister primarily because of the latter's international reputation and his highly compelling abilities when it came to speaker.
“In reality, he was, truthfully, more of a celebrity rather than an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader alleges how Varoufakis had a personal agenda that included advancing Varoufakis's books and testing out his economic models on Greece instead of truly advocating its economic stability.
He explained that the negotiations to prevent bankruptcy became “not only a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
Critical Talks
Amid volatile discussions, Greece found itself dangerously close to leaving the eurozone.
At stake lay both the country's destiny and the severe cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those harsh bailout terms were subjected to a popular referendum, a move which plunged the EU into a deeper crisis of identity.
Although the referendum was carried decisively by those who opposed the cuts, the prime minister was forced to ignore the result and agree to a rescue deal from creditors that turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate management.”
Tsipras also claimed that his aggressive approach made him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
