Within his recently unveiled autobiography, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on that turbulent period of Greece's debt drama.
A Controversial Appointment
In Tsipras's account, Tsipras chose the maverick academic Yanis Varoufakis to be his finance minister largely due to his international reputation along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that his finance chief had his own motives which involved advancing Varoufakis's publications as well as experimenting with his economic models using Greece rather than truly advocating its economic stability.
Tsipras noted how those negotiations to avoid bankruptcy were “not only a way to secure improved terms for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny and the severe austerity policies demanded in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to find funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, a move that plunged Europe into further crisis of identity.
Although the referendum was won decisively by those against the cuts, Tsipras was forced but to ignore the result then negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Criticism
In the book, the author concludes that Varoufakis demonstrated himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, and helped hawks who were pushing for Grexit.
This account of history has been met with anger and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
