In a freshly published memoir, called Ithaki, the ex- leader Tsipras pulls no punches as he examines the chaotic era during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's version, Tsipras appointed that unorthodox academic Yanis Varoufakis as his finance minister mainly because of his global profile and his very persuasive abilities as a communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief had his own agenda that involved advancing Varoufakis's publications and testing out his economic models using Greece rather than genuinely fighting for its financial survival.
He explained that those talks to stave off insolvency were “not just a way to secure a better deal for the country. They became a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, Greece came perilously close to exiting the single currency area.
At stake lay both Greece's destiny but also the punishing austerity policies demanded in return for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those punitive conditions were put to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by voters against austerity, the prime minister had little option but to ignore the result then negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive style left him more and more alone among peers, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
The account of history has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
