In a newly released autobiography, titled Ithaki, the ex- prime minister Tsipras does not hold back while he examines that turbulent period of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's account, he appointed the maverick economist Yanis Varoufakis as his finance minister primarily due to the latter's global profile along with Varoufakis's very persuasive skills as a speaker.
“He was, in reality, more like a star and less of an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis possessed his own agenda which involved advancing his books as well as experimenting with his own theories using Greece rather than genuinely fighting for the country's financial survival.
Tsipras wrote that the talks to prevent insolvency were “not only a way to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, the country came perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future and the severe austerity measures demanded in return for financial aid from foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister was forced but to reject its outcome then negotiate a rescue deal from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished his new role.”
When the minister proposed a backup strategy involving establishing a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
He further wrote that his aggressive style made him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.