In a newly released memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on that chaotic era during Greece's debt drama.
A Controversial Choice
According to Tsipras's account, he chose that maverick economist Yanis Varoufakis to be his finance minister primarily because of the latter's worldwide fame and Varoufakis's very persuasive skills when it came to public orator.
“He was, truthfully, more like a personality and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief possessed his own motives which involved promoting Varoufakis's publications as well as testing out his own economic models using the nation rather than truly fighting for its economic stability.
He noted that the talks to stave off insolvency became “not just a way of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself perilously close to leaving the single currency area.
On the line was not only the country's destiny but also those punishing cutbacks required in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, the harsh bailout terms were subjected to a public vote, a move which threw the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option but to reject its outcome and negotiate a bailout package from creditors which proved to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a parallel currency and issuing coupons to retirees, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, the author asserts how his former ally demonstrated himself “unfit for a deal demanding complex and sensitive management.”
He also claimed that his confrontational style left him more and more alone with colleagues, endangered the country, while helped hawks who were advocating Grexit.
The account of events has provoked anger along with shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
