In a recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines that chaotic period during Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras chose that maverick economist Yanis Varoufakis to be the treasury head primarily due to his international reputation and Varoufakis's very persuasive abilities when it came to speaker.
“He was, in reality, more like a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief had a personal agenda which included advancing Varoufakis's publications as well as experimenting with his game theories on Greece rather than truly fighting for its financial survival.
Tsipras noted that the discussions to stave off insolvency were “not only a method of achieving improved terms for the country. They were an experiment, an historic chance to prove the truth of his theories.”
Critical Negotiations
During rollercoaster discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line was both the country's destiny but also the severe cutbacks demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive conditions were put to a public vote, an action which plunged the EU into further existential crisis.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome then agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras said he realised it was game over and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for a deal that required complex and sensitive handling.”
He further wrote that Varoufakis's confrontational style left him more and more alone with colleagues, endangered the country, and helped hardliners that were advocating Grexit.
This account of history has provoked anger and shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
