In a freshly published personal account, named Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on the turbulent era of Greece's debt drama.
A Controversial Choice
In Tsipras's version, he selected that maverick economist Yanis Varoufakis as his treasury head primarily due to his international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more of a personality rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis had a personal agenda that involved advancing Varoufakis's publications as well as experimenting with his own game theories using Greece instead of genuinely advocating the country's financial survival.
He wrote that those discussions to avoid bankruptcy became “not only a way to secure improved terms for the country. They were a test, a monumental opportunity to prove the validity of his ideas.”
Critical Negotiations
During tense negotiations, the country came dangerously on the brink of exiting the single currency area.
On the line was not only Greece's future and the severe austerity measures required in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and Reversal
That summer, those harsh bailout terms were put to a public vote, an action that threw Europe into a deeper existential crisis.
Even though the referendum was won decisively by those who opposed austerity, Tsipras had little option but to ignore the result then agree to a bailout package from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Enduring Criticism
In the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also claimed that his confrontational approach left him more and more alone among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
The account of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
