Within his newly released personal account, named Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that turbulent era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, Tsipras appointed that unorthodox academic Yanis Varoufakis as the finance minister primarily because of the latter's global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal agenda that involved advancing Varoufakis's publications as well as testing out his economic models using the nation instead of truly advocating the country's economic stability.
Tsipras wrote how the negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They became a test, an historic opportunity to demonstrate the validity of his ideas.”
Critical Negotiations
During tense negotiations, Greece found itself perilously close to leaving the eurozone.
At stake was both Greece's future but also those severe cutbacks required in exchange for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal from foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan involving establishing a secondary currency and issuing coupons to retirees, the leader said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
Tsipras also claimed how Varoufakis's confrontational style left him more and more alone among peers, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
The account of events has been met with fury and shock in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
