The hefty price of Tsipras’ Ithaca

After reading “Ithaki” (Ithaca), the political memoir of Alexis Tsipras released this week, I realized that even today the former leftist prime minister does not understand – or does not want to understand – that his administration not only failed to benefit Greece but in fact cost it 100 billion euros. Had Tsipras kept his feet on the ground instead of indulging in wishful thinking, he would have voted for Stavros Dimas for president in December 2014. That would have allowed the Samaras-Venizelos coalition to adopt the final austerity measures worth 1.5 billion euros and return the country to the international markets.

In the elections that would have followed the completion of the Samaras government’s term, Tsipras would almost certainly have won. He would have taken office with Greece free of bailout programs and on a path of strong growth. Instead, his thirst for power pushed him to force elections, believing he could bend Europe to his will.

“I was absolutely convinced that the country deserved a chance to avoid the tragedy of futile austerity… I deeply believed that a major political change would make it possible to reach an honorable compromise with our partners,” Tsipras writes in his book. He adds: “With today’s hindsight, it seems that perhaps I had more faith in the power of justice and my ideas than I should have. And perhaps more trust in Europe itself as well.”

Let us recall that the European Commission’s forecasts for the Greek economy – had the Samaras government remained in place – predicted growth of 2.9% in 2015 and 3.7% in 2016. Under Tsipras, the economy ended 2015 in recession at -0.3%.

Following “the power of justice and his ideas,” Tsipras confronted Europe, refused financing from Greece’s partners (while seeking a loan from Russian President Vladimir Putin), and proceeded with the “self-destructive” bailout referendum. He shut down the banks, sending citizens to ATMs to withdraw 60 euros, and was then forced into the infamous “kolotoumba.” All that led to the third, unnecessary bailout and harsh austerity measures until 2019, along with the transfer of all public property to creditors for 99 years.

Tsipras’ Ithaca came at a very high price.