In a newly released memoir, called Ithaki, the former leader Tsipras pulls no punches as he examines the turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he selected that unorthodox economist Yanis Varoufakis to be the treasury head largely due to his global profile along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more like a celebrity rather than an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis possessed his own motives which included promoting his publications as well as testing out his own theories using Greece rather than truly advocating the country's financial survival.
Tsipras noted how the discussions to prevent bankruptcy became “not just a method to secure a better deal for the country. They were a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
Amid tense discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line lay both the country's destiny and those severe cutbacks demanded in return for financial aid from foreign lenders.
Failed Options
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a public vote, an action that threw the EU into a deeper crisis of identity.
Although the vote was won decisively by those against the cuts, the prime minister had little option to ignore the result then agree to a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The account of events has provoked anger along with stunned disbelief in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
