Within his newly released autobiography, titled Ithaki, the former leader Tsipras pulls no punches as he examines that turbulent era of Greece's financial crisis.
A Controversial Choice
As per Tsipras's recollections, he chose that maverick economist Yanis Varoufakis to be the treasury head primarily because of his worldwide fame along with his “extremely attractive” skills when it came to communicator.
“He was, actually, more of a star rather than an economist,” wrote Tsipras.
Clashing Agendas
Tsipras claims that Varoufakis had his own motives that involved promoting Varoufakis's books as well as testing out his theories using Greece instead of truly advocating the country's financial survival.
He explained how those talks to stave off insolvency became “not just a way to secure a better deal for the country. They became a test, an historic chance to demonstrate the truth of his ideas.”
Critical Negotiations
During tense discussions, Greece came perilously close to leaving the single currency area.
On the line was not only the country's destiny but also those punishing austerity measures demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a public vote, an action that threw the EU into deeper existential crisis.
Even though the vote was won decisively by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal from creditors that proved to be more severe.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, the leader said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also wrote how Varoufakis's confrontational style left him more and more alone among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of history has provoked anger and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
