In a freshly published autobiography, called Ithaki, the former premier Tsipras pulls no punches as he examines that turbulent period of Greece's debt drama.
A Controversial Choice
According to Tsipras's recollections, he appointed that maverick academic Yanis Varoufakis as the finance minister primarily due to the latter's international reputation along with his “extremely attractive” skills when it came to communicator.
“He was, truthfully, more of a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal agenda that involved advancing his books and testing out his economic models on Greece instead of truly fighting for its financial survival.
Tsipras wrote that the negotiations to stave off insolvency became “not only a method of achieving improved terms for Greece. They became a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece found itself dangerously close to leaving the single currency area.
At stake lay both Greece's future but also those severe cutbacks required in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were put to a public vote, an action which plunged Europe into further crisis of identity.
Even though the vote was carried resoundingly by voters who opposed austerity, Tsipras had little option to reject its outcome and agree to a rescue deal from creditors which proved to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included creating a parallel currency as well as issuing vouchers to pensioners, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras further wrote how his confrontational style left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of history has provoked fury along with shock among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
