In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that chaotic era of Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he selected the maverick economist Yanis Varoufakis to be his treasury head primarily due to the latter's worldwide fame and his highly compelling skills as a speaker.
“In reality, he was, in reality, more like a personality and less of an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader alleges how his finance chief possessed a personal agenda that involved advancing Varoufakis's publications and testing out his theories on Greece rather than genuinely advocating its financial survival.
He explained that the discussions to avoid insolvency were “not just a method to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, the country came perilously on the brink of exiting the single currency area.
At stake was both the country's destiny but also those harsh cutbacks demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action that plunged the EU into a further crisis of identity.
Even though the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal from foreign lenders which proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
When the minister outlined a backup strategy that included creating a parallel 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 memoir, the author asserts that his former ally had proved himself “unsuitable for a deal demanding complex and sensitive management.”
He also claimed that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
