In a newly released personal account, named Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the chaotic era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected that unorthodox academic Yanis Varoufakis as the finance minister mainly due to the latter's global profile along with his highly compelling skills as a public orator.
“He was, actually, more like a celebrity and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that Varoufakis possessed his own agenda that included promoting his publications and testing out his own game theories using Greece rather than truly advocating its economic stability.
He wrote how the talks to prevent bankruptcy were “not just a method to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, the country came perilously on the brink of leaving the single currency area.
At stake was not only the country's future but also those punishing austerity measures demanded in return for bailout funds by international creditors.
Failed Options
Attempts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Although the referendum was carried resoundingly by those against austerity, Tsipras had little option but to ignore the result then agree to a bailout package from creditors that proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and distributing coupons to pensioners, the leader knew that it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and delicate management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The retelling of history has provoked fury and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
