In a newly released personal account, called Ithaki, the ex- prime minister Tsipras does not hold back as he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he appointed the maverick academic Yanis Varoufakis to be the treasury head largely due to the latter's global profile and Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges how his finance chief had his own motives which included advancing Varoufakis's publications and testing out his own game theories using Greece rather than truly advocating its economic stability.
He noted how the negotiations to avoid bankruptcy became “not just a way of achieving a better deal for Greece. They were a test, an historic chance to prove the truth of his ideas.”
Critical Negotiations
Amid volatile discussions, Greece found itself perilously on the brink of leaving the single currency area.
On the line was both the country's destiny and those harsh austerity policies demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a public vote, a move that threw Europe into a further crisis of identity.
Although the vote was carried resoundingly by voters against the cuts, Tsipras was forced but to reject its outcome and agree to a rescue deal from creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
After the minister proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate handling.”
He further wrote that his aggressive approach made him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, while the former minister has so far kept a deafening silence on the matter.
