Within his newly released autobiography, called Ithaki, the former prime minister Tsipras spares no criticism while he reflects on that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's recollections, he chose that maverick academic Yanis Varoufakis to be his finance minister largely due to the latter's worldwide fame and his very persuasive skills as a communicator.
“In reality, he was, in reality, more like a personality and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief had his own agenda that involved advancing Varoufakis's publications and testing out his economic models using Greece rather than truly advocating its financial survival.
He noted that the negotiations to avoid insolvency became “not just a method to secure improved terms for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself dangerously close to exiting the eurozone.
At stake was both Greece's future and the punishing austerity policies demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, an action which plunged the EU into further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option to ignore the result then negotiate a bailout package from foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who drew media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing coupons to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts how Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
He also wrote that Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with anger along with shock in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
