Within his recently unveiled memoir, titled Ithaki, the ex- premier Tsipras spares no criticism as he reflects on the turbulent era of Greece's economic turmoil.
A Controversial Appointment
In Tsipras's version, he selected the unorthodox economist Yanis Varoufakis as the treasury head mainly because of the latter's international reputation and Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests that his finance chief possessed a personal agenda that included advancing Varoufakis's books and experimenting with his theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras noted how the negotiations to stave off bankruptcy were “not just a method to secure a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
At stake lay not only the country's future but also the harsh austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those harsh bailout terms were put to a popular referendum, a move which plunged the EU into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result then agree to a bailout package from creditors that proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the covers of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, the leader said he realised it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the book, the author asserts that Varoufakis had proved himself “unsuitable for an agreement demanding intricate and sensitive handling.”
He further claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
