In a newly released personal account, named Ithaki, the former leader Tsipras does not hold back while he reflects on that turbulent era during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, Tsipras appointed the unorthodox academic Yanis Varoufakis as the treasury head largely due to the latter's global profile along with his highly compelling skills as a communicator.
“In reality, he was, actually, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis had his own agenda that included advancing Varoufakis's publications and experimenting with his own game theories using the nation rather than genuinely fighting for its economic stability.
He wrote how those negotiations to avoid bankruptcy were “not just a way to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
During tense discussions, Greece came perilously on the brink of exiting the eurozone.
At stake lay both the country's future but also the severe austerity measures demanded in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, a move that plunged the EU into deeper existential crisis.
Even though the vote was won decisively by voters against austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal from creditors which turned out to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras also wrote that his aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating Grexit.
The retelling of events has provoked fury along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
