Within his freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches as he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, Tsipras appointed that maverick economist Yanis Varoufakis to be the finance minister primarily due to the latter's international reputation along with his “extremely attractive” skills when it came to public orator.
“He was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis had a personal agenda that included promoting his books as well as experimenting with his own theories using the nation instead of truly advocating its economic stability.
Tsipras wrote how those negotiations to avoid insolvency were “not only a way of achieving a better deal for the country. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake was both the country's destiny but also those severe austerity measures required in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, an action which plunged Europe into further existential crisis.
Even though the vote was carried decisively by those who opposed austerity, Tsipras was forced but to reject its outcome and agree to a bailout package with creditors that turned out to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
He further claimed that his confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet on the matter.
