In a newly released personal account, titled Ithaki, the former prime minister Tsipras pulls no punches as he examines that turbulent era during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, Tsipras chose that maverick economist Yanis Varoufakis as his finance minister mainly because of the latter's worldwide fame and his very persuasive skills as a speaker.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis had a personal motives that included advancing Varoufakis's publications and experimenting with his economic models using Greece instead of genuinely advocating the country's economic stability.
He wrote how those talks to avoid insolvency were “not just a method of achieving improved terms for the country. They were an experiment, an historic chance to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, the country came perilously close to leaving the eurozone.
At stake was both the country's destiny but also those punishing cutbacks demanded in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to find funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, a move which threw the EU into a further crisis of identity.
Although the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal from creditors which turned out to be more severe.
Final Straw
The ex-PM revealed that 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 … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal demanding complex and delicate handling.”
He further claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
The account of history has been met with fury along with stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
