Within his newly released personal account, called Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that chaotic period of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, he chose that maverick economist Yanis Varoufakis to be his finance minister primarily due to his global profile and his highly compelling skills as a communicator.
“In reality, he was, actually, more like a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges that his finance chief had a personal agenda which involved advancing his publications and experimenting with his own game theories using Greece instead of truly advocating its financial survival.
Tsipras wrote that those negotiations to prevent bankruptcy were “not only a way to secure a better deal for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
During rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
On the line was not only the country's future but also those punishing austerity policies required in return for financial aid by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into further crisis of identity.
Even though the vote was won resoundingly by voters against the cuts, Tsipras had little option but to ignore the result then agree to a rescue deal with creditors which proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to pensioners, the leader knew that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement that required intricate and delicate handling.”
He further wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
