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Last updated: July 11, 2015 2:31 am

Aristides Hatzis

ven before the January elections in Greece, it was quite clear that the new Syriza governmentwould have to negotiate on two different fronts: with Greece’s creditors and the Syriza

extremists. Both negotiations failed miserably a fortnight ago when Alexis Tsipras realised that hecould not compromise without undermining his fragile parliamentary majority.

The prime minister’s reaction was risky and foolish: he asked the Greek people to reject a proposalwhich, at the moment they voted on it, did not exist. The referendum supplied the result MrTsipras wanted but in many ways his position has deteriorated. His opportunistic manoeuvreinfuriated almost every other European leader. The prospect of Grexit suddenly became more real.

If Mr Tsipras’s objective was to blackmail the institutions into

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Statesman or ideologue — Tsipras has to choose - FT.com http://www.ft.com/intl/cms/s/0/17bd530a-2715-11e5-bd83-71cb60e8f08c...

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offering a better deal, he clearly failed. His last minute proposal, delivered on Thursday night, wasin line with most of the creditors’ demands. It was a bitter defeat for him and for those whoadvocated voting No. They won a referendum but lost a war.

Yet Mr Tsipras is more popular than ever. His political hegemony is unprecedented in recentGreek history. His latest ploy was to try to outsmart both the creditors and his own comrades witha bold move: a parliamentary vote, which he won in the early hours of Saturday morning, on hislatest offer to the institutions. His party has had to swallow his proposal; who would dare tochallenge him? Meanwhile, his intention is for the rest of Europe to conclude that Syriza hasreached the limits of bending without breaking. Any more pressure will signify their determinationto humiliate Mr Tsipras at any cost.

With the parliamentary vote won, Greek legislators have approved a third bailout agreement. Itwill not be perfect; tax rises are still unjustifiably prevalent, the overhaul of the pension system ishalf-baked, cuts in military spending are less than enough, energy sector deregulation is absent,the privileges of the Greek Orthodox Church remain intact.

But it gives Mr Tsipras the power and the opportunity to cleanse his own party of extremists. Hecan establish himself as a statesman, ready to assume political cost in order to protect his country.He can erase from the political memory his unwise promises, his imprudent referendummanoeuvre, his clumsy negotiation methods, his many lethal mistakes. He can transform himselfinto a leader of a more moderate left, decisively pro-European, not from necessity but from choice.He can consolidate his power, he can reorganise and expand his party towards the centre and hecan reinvent himself as a progressive reformist.

Alternatively, he can remain the same, a relic of a defunct ideology. Creating obstacles to reforms.Trying to cheat Greece’s partners. Reorganising, regrouping and waiting for a rematch. In a gamehe is destined to lose.

The writer is an associate professor of law and economics at the University of Athens

Statesman or ideologue — Tsipras has to choose - FT.com http://www.ft.com/intl/cms/s/0/17bd530a-2715-11e5-bd83-71cb60e8f08c...

2 of 3 11/7/2015 11:30 πμ