Within his freshly published memoir, called Ithaki, the ex- prime minister Tsipras spares no criticism as he examines the turbulent era during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's account, Tsipras chose the unorthodox economist Yanis Varoufakis to be his finance minister mainly due to his global profile along with his highly compelling skills when it came to communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief possessed a personal motives that involved promoting Varoufakis's books and experimenting with his own game theories using Greece rather than genuinely advocating its economic stability.
He wrote that those negotiations to prevent bankruptcy became “not just a way of achieving improved terms for the country. They were a test, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid volatile discussions, the country came dangerously on the brink of leaving the single currency area.
On the line lay both the country's future and the severe cutbacks demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the harsh conditions were put to a popular referendum, a move that threw the EU into deeper existential crisis.
Although the vote was carried decisively by those against the cuts, the prime minister had little option but to reject its outcome and negotiate a rescue deal from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself “unfit for a deal demanding complex and delicate management.”
Tsipras further wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for Grexit.
The account of events has provoked anger along with shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
