In a recently unveiled personal account, called Ithaki, the former leader Tsipras pulls no punches while he reflects on that chaotic period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, Tsipras selected that maverick economist Yanis Varoufakis to be the treasury head mainly because of the latter's international reputation and his highly compelling skills as a speaker.
“In reality, he was, in reality, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader claims that his finance chief possessed his own agenda that included promoting his books and experimenting with his game theories using Greece rather than truly advocating its economic stability.
He noted how those discussions to prevent bankruptcy were “not just a method to secure improved terms for the country. They became a test, an historic chance to prove the truth of his economic theories.”
Critical Talks
Amid tense discussions, the country found itself perilously close to exiting the eurozone.
On the line lay both the country's destiny and the harsh cutbacks demanded in return for rescue loans from international creditors.
Failed Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the punitive bailout terms were subjected to a public vote, a move which plunged the EU into a further existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and agree to a rescue deal with creditors which proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When the minister proposed a backup strategy that included creating a parallel currency as well as distributing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author asserts that Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
Tsipras further wrote that his confrontational 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.
This account of history has provoked anger and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
