Within his newly released memoir, called Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, he appointed that unorthodox economist Yanis Varoufakis as his treasury head largely due to his global profile and his highly compelling skills as a public orator.
“He was, actually, more like a star rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis possessed his own motives that involved advancing Varoufakis's books as well as experimenting with his own theories on Greece rather than truly advocating its financial survival.
He wrote that the negotiations to stave off insolvency became “not only a method of achieving improved terms for Greece. They were an experiment, a monumental opportunity to prove the validity of his ideas.”
Critical Negotiations
During tense negotiations, Greece found itself perilously close to leaving the single currency area.
At stake lay both Greece's future but also those punishing austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, a move that plunged Europe into a deeper crisis of identity.
Even though the vote was carried decisively by voters against the cuts, Tsipras was forced but to ignore the result and negotiate a bailout package with foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras also claimed how his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
