Within his newly released autobiography, titled Ithaki, the former premier Tsipras pulls no punches as he reflects on the chaotic period during Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, Tsipras selected the unorthodox economist Yanis Varoufakis to be the finance minister largely because of his worldwide fame and Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had his own agenda that included advancing his books and experimenting with his theories using Greece instead of genuinely advocating its economic stability.
He explained how those negotiations to prevent insolvency were “not just a way to secure improved terms for the country. They were an experiment, an historic chance to demonstrate the truth of his economic theories.”
Critical Talks
During rollercoaster discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay not only Greece's future but also those punishing austerity measures required in return for financial aid from international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece was tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, those harsh conditions were put to a popular referendum, a move that threw Europe into deeper existential crisis.
Although the referendum was won decisively by those who opposed austerity, the prime minister had little option to reject its outcome then agree to a bailout package from creditors which turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan involving creating a parallel currency and issuing coupons to retirees, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's aggressive approach left him more and more alone among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with fury and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
