In a freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Choice
In the ex-PM's account, he appointed the maverick academic Yanis Varoufakis as the treasury head primarily due to the latter's global profile and his “extremely attractive” skills as a communicator.
“He was, in reality, more of a celebrity and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis had a personal motives that involved promoting his books and testing out his own game theories using the nation instead of genuinely advocating its financial survival.
He explained that those discussions to stave off bankruptcy became “not only a method to secure improved terms for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
Critical Talks
Amid tense discussions, the country found itself perilously on the brink of leaving the single currency area.
At stake lay both the country's future but also the harsh austerity policies demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the harsh conditions were put to a public vote, a move which threw the EU into deeper existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras had little option but to ignore the result and agree to a bailout package with creditors which turned out to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unfit for a deal demanding complex and delicate handling.”
He further wrote that Varoufakis's aggressive style made him more and more alone with colleagues, endangered the country, while helped hawks who were advocating Grexit.
This account of events has provoked anger along with shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
