In a freshly published personal account, titled Ithaki, the former premier Alexis Tsipras spares no criticism while he reflects on that chaotic era of Greece's debt drama.
A Controversial Appointment
In the ex-PM's account, he chose the unorthodox economist Yanis Varoufakis as the treasury head mainly because of the latter's international reputation and Varoufakis's highly compelling skills as a public orator.
“He was, actually, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how his finance chief had a personal agenda that involved promoting Varoufakis's books and experimenting with his own economic models on Greece instead of truly advocating the country's financial survival.
He wrote that the discussions to avoid bankruptcy were “not just a method of achieving improved terms for the country. They were a test, a monumental chance to prove the truth of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, the country found itself dangerously close to leaving the single currency area.
On the line lay both the country's future but also the severe austerity measures demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the harsh bailout terms were subjected to a public vote, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was carried resoundingly by those against austerity, the prime minister had little option to ignore the result and agree to a rescue deal from creditors which proved to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan involving establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how his former ally demonstrated himself to be “unfit for an agreement that required intricate and sensitive management.”
He also wrote how his aggressive style left him more and more alone among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked anger along with shock in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
