Within his recently unveiled personal account, titled Ithaki, the former premier Tsipras pulls no punches while he reflects on that chaotic period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis as the finance minister largely due to his global profile along with his very persuasive abilities when it came to communicator.
“He was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief possessed a personal motives that included promoting his publications as well as testing out his economic models on the nation instead of truly advocating the country's economic stability.
He noted that those negotiations to prevent insolvency became “not only a way to secure a better deal for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was both Greece's destiny and the severe austerity measures required in return for rescue loans from international creditors.
Failed Options
Efforts to secure financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a popular referendum, an action which threw the EU into a deeper existential crisis.
Although the vote was won decisively by those who opposed the cuts, the prime minister was forced to reject its outcome then negotiate a rescue deal with creditors which turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote that his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
