In a recently unveiled personal account, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras selected the maverick economist Yanis Varoufakis to be his treasury head primarily due to his worldwide fame and his very persuasive skills as a communicator.
“He was, in reality, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges how Varoufakis possessed his own motives which included advancing Varoufakis's books and testing out his own game theories using the nation rather than truly advocating its economic stability.
He noted how the negotiations to stave off bankruptcy became “not only a method of achieving a better deal for Greece. They became a test, an historic opportunity to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece came perilously on the brink of exiting the eurozone.
At stake was both Greece's destiny and the harsh cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, a move which threw Europe into a deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option but to ignore the result and agree to a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally demonstrated himself “unsuitable for a deal that required intricate and sensitive handling.”
He also claimed that Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
