Within his freshly published autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he chose the unorthodox economist Yanis Varoufakis to be his finance minister largely because of the latter's international reputation along with Varoufakis's highly compelling skills as a communicator.
“He was, in reality, more of a star and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis had a personal motives that involved promoting his books and experimenting with his own game theories using Greece rather than genuinely fighting for the country's economic stability.
He wrote that those discussions to stave off bankruptcy became “not just a way to secure improved terms for Greece. They were a test, an historic chance to prove the truth of his economic theories.”
Critical Talks
Amid volatile negotiations, the country found itself dangerously close to exiting the single currency area.
At stake was both Greece's destiny and those severe austerity measures required in return for rescue loans by international creditors.
Failed Alternatives
Attempts to secure funds from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that plunged Europe into deeper crisis of identity.
Even though the vote was carried decisively by voters against the cuts, Tsipras had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the book, the author asserts how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate handling.”
He also wrote how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
This retelling of events has been met with anger and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
