In a recently unveiled personal account, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected the maverick academic Yanis Varoufakis as his finance minister largely due to the latter's international reputation along with Varoufakis's very persuasive abilities as a public orator.
“He was, truthfully, more like a personality rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had a personal agenda which involved advancing Varoufakis's publications and experimenting with his game theories using Greece rather than truly advocating the country's economic stability.
Tsipras noted that those talks to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became a test, a monumental chance to prove the validity of his economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake lay not only the country's future and the punishing austerity policies demanded in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a public vote, a move which threw Europe into deeper existential crisis.
Even though the vote was carried resoundingly by voters against austerity, the prime minister was forced but to reject its outcome and negotiate a bailout package with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency and distributing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed how his confrontational style left him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
