Now a clean copy of the latest text had been printed, and German
Chancellor Angela Merkel, French President Francois Hollande and
European Council President Donald Tusk were satisfied with the
terms. So too appeared Tsipras but he left the room to check the
details one more time with colleagues in his leftist party Syriza.
Nearly an hour later he had still not returned. Heads of government
and state paced around, fiddling with their phones. The Lithuanian
president and Slovenian prime minister said they could wait no
longer and left through a backdoor, a diplomat involved in the
summit said.
When Tsipras finally reappeared, his response confirmed what
Europe's leaders had suspected for some time: without the full
backing of his party, the Greek leader could not commit. The
drafting process had to begin anew.
The setback reinforced European doubts that Tsipras could control
his party. Friends and associates say the 40-year-old's calm
demeanor belies a man struggling to balance Syriza, Greece's
economic interests and his own leftist ideology. At many points he
has turned to a small team of advisers, conferring with them again
and again before making major decisions.
Tsipras's strategy going into the bailout talks was to push
international partners to the edge, betting they would make
concessions to prevent Greece crashing out of the euro zone. In the
event, though, he was forced to blink first and then ad-lib his way
through the crisis that ensued.
He found himself pressed on the one side by the Germans, who didn't
want to give another penny to prop up Greece, and on the other by
his own political party, which opposed the austerity demanded in
return for a bailout.
The indecision and delays have cost Greece about 30 billion euros in
the last three weeks alone, according to one senior European Union
(EU) official. Tsipras' inability to cut a deal in early July, which
forced Greek banks to close their doors and sent the economy
plunging, has pushed up the cost of the latest bailout to 86 billion
euros, from the 53 billion euros Greece was requesting only a few
weeks ago.
Tsipras would not speak to Reuters for this story. But he told Greek
state broadcaster ERT on July 15 that he had made mistakes and taken
some bad decisions. But at least he was a straight talker, he said.
"You can accuse me of many things, that I had illusions that this
Europe can be defeated, that the power of what's right can defeat
the power of banks and money. But you cannot accuse me of lying to
the Greek people."
A former Syriza colleague who has known Tsipras since he was a
teenager and is now with another party said: "He has grown in leaps
politically, but his decisions are a result of his fears. Fear that
he will be the prime minister who led Greece out of the euro, fear
his party will split, and also fear he is betraying the ideology he
has fought for and believed in since he was a child."
METEORIC RISE
Born in 1974 a few days after Greece's return to democracy following
seven years of military dictatorship, Tsipras joined the youth
branch of the Communist Party when he was just 14. Three years later
he moved to a more liberal-minded splinter group that would later be
renamed Syriza.
Until a renovation a few months ago, a portrait of Che Guevara hung
outside Tsipras' office in Syriza headquarters in Athens. "At 16, I
read Marx and believed capitalism would end and we would go to the
next stage of society, which is socialism. To me, this was
absolute," he said in a 2008 interview with student paper
Schooligans. "I was wrong. Now I know it's not absolute. It may
happen, but it may not."
Tsipras rose through Syriza's ranks swiftly. As head of the party's
youth wing he "was a good manager of daily issues but didn't give
the impression he would be a great leader," said an older Syriza
member who has known Tsipras since he was a teenager.
Nevertheless, party president Alekos Alavanos picked him as a
candidate in the 2006 race to be mayor of Athens. With youth and
sincerity on his side, Tsipras unexpectedly received 10.5 percent of
the vote not enough to win, but a massive gain for what was still
a tiny party.
"Alavanos catapulted him to the top. He really fought with others in
the party to establish him because he believed Alexis was the only
hope for the (Left) Coalition," said the former Syriza member,
referring to a forerunner of the party.
At 33, Tsipras was president of the party, the youngest political
leader in the history of modern Greece. By 40, with no experience of
national government, he was prime minister, elected on the promise
of ending austerity but keeping Greece in the euro zone.
Even his mentor did not think the promise stacked up. Alavanos, now
65, left Syriza years ago and heads a small party that advocates
Greece's exit from the euro zone. He has never publicly discussed
Tsipras and refused to comment on their relationship for this story.
But he did criticize the idea that Greece can stay in the euro and
not implement austerity. "Basic intelligence dictates this is
impossible," Alavanos said.
INNER CIRCLE
Like the prime minister, Tsipras' team of close advisers had little
experience of government or international politics. In large part,
members of his inner circle are trusted friends of a similar
ideology and age.
His closest confidant is Minister of State Nikos Pappas, two years
his junior. Pappas, an economist, was living in Scotland with no
plans to return to Greece when Tsipras asked him to join him in
2008.
Tsipras also brought in British-trained economist Yanis Varoufakis,
who had been an academic in Britain, Australia and the United
States. He offered a way to build bridges with Europe and the United
States. "(Tsipras) took him in because he broke some barriers for
us," said a Syriza insider. "He was recognizable and he had
international connections."
But Varoufakis was also radical and outspoken. Appointed finance
minister after Syriza won power in January, he proved to be less
bridge builder and more destroyer as he negotiated with
international lenders. He angered many in Europe with his blunt
rhetoric and unorthodox ideas. Even Tsipras was shocked to hear
about a Varoufakis' plan to recruit average Greeks and tourists to
act as tax inspectors, insiders said.
As negotiations floundered, these two key figures in the Greek
government went in different directions. Varoufakis, who would not
speak for this story, eventually quit, saying he felt Tsipras was
ready to reach a deal with Greece's creditors at any price.
In all the turmoil, Tsipras also had two confidants of a different
nature. One was Minister of State Alekos Flambouraris, who had
worked with Tsipras' late father in the construction industry.
People close to Tsipras say the 73-year-old Flambouraris offers
emotional support as his leader tries to balance party, country and
principles.
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Tsipras' other support was his partner Betty Batziana, his high
school sweetheart. At home they still lead a quiet and modest life,
little changed from before he became prime minister.
Batziana has studiously stayed out of the limelight. In one of her
few contacts with the media during a trip to Moscow, reporters asked
whether it was true, as some British media suggested, that she had
said she would leave Tsipras if he agreed to a bad deal for Greece.
In reply, she laughed.
MOTLEY BUNCH
Tsipras' inner team started to discuss the idea of a referendum in
April, as it became increasingly clear Greece's creditors would not
budge on their austerity demands. Their aim was to use a vote on the
EU's bailout terms as a way to entrench the prime minister as the
dominant political figure in Greece, rally public support around him
and give him leverage with lenders, insiders say.
While popular support was important, this overlooked two important
factors. First, Greece's only real bargaining chip with its lenders
was the threat of the chaos that might ensue if it had to leave the
euro zone. Second, Tsipras was struggling to keep Syriza a motley
bunch of 16 groups, ranging from Maoists to environmentalists
united.
Some far-left members wanted Greece to leave the euro zone and go
back to the drachma. "In the last few weeks, Tsipras had to keep a
balance between keeping Greece in the euro and holding his own party
together," a former senior Syriza official said.
Greece's international partners grew increasingly frustrated with
Tsipras and his lack of decisiveness. On June 24, Tsipras met for
hours at European Commission headquarters with International
Monetary Fund boss Christine Lagarde, European Commission President
Jean-Claude Juncker, European Central Bank chief Mario Draghi and
Eurogroup finance ministers.
Two people familiar with the talks said Tsipras appeared to agree at
least twice on terms for a bailout, only to request a time-out to
consult with his delegation, which included Varoufakis and Pappas.
Each time, he returned to the room without his normal smile and said
the package was "unacceptable," causing immense irritation and loss
of trust, the two sources said.
"He brought this busload of Syriza activists with him, and each time
we thought we had a deal, he would go next door and consult the
comrades, and come back stony-faced saying it was impossible," one
of the sources said.
A Greek official said a mini-bus of Greek ministers and Syriza
economists was in Brussels. It is natural that the prime minister
consults with his delegation, the official said.
COMRADES
In the referendum, Greeks voted against tough bailout terms
involving austerity. It was a huge victory for Tsipras, but the
sense of elation didn't last. He sought parliament's approval to go
back to the EU negotiating table and, unsure whether he could hold
his government together, reached out to his political rivals for
support.
The leaders of all Greece's main parties except far-right Golden
Dawn were called to a meeting at the presidential mansion on July 6.
It lasted nearly seven hours. Insiders said Tsipras was accused of
bringing Greece to the brink of disaster with his erratic behavior.
Though Tsipras spent most of the time consulting EU leaders by
telephone, he listened to his critics, spoke little and kept copious
notes, the insider said. He looked tired and anxious and responded
by saying: "We must all exercise self-criticism."
At the end of the marathon meeting, a joint statement was issued,
declaring the referendum's resounding rejection of a bailout deal as
a mandate to negotiate further. During a five-hour parliamentary
debate that started after midnight and ended with Tsipras delivering
a final appeal in a trembling voice, Syriza was in uproar.
Parliamentary offices filled with cigarette smoke despite a smoking
ban. Syriza lawmakers walked the corridors telling reporters the
government might not survive the night. Some Syriza lawmakers
rebelled, but Tsipras won the vote with the support of other
parties.
Wounded, but armed with parliament's approval, he returned to
Brussels for the final showdown. In reality, though, he was losing
any leverage to negotiate and decisions were being forced on him.
As EU funding ran out, the government was compelled to close Greek
banks and limited people to 60 euros a day from cash machines.
Tsipras looked exhausted. Some European leaders even urged him to
get some rest. But with the intervention of the French, a deal was
reached under which Greece agreed to accept even tougher economic
reforms than had been on offer before. Tsipras announced it to his
team calmly: "OK, we signed."
In Athens, a group of Syriza supporters gathered around wine and
meze in the leafy yard of a house in the leftist district of
Exarcheia. The group was split between those who had wanted Tsipras
to get a bailout deal and keep Greece in the euro, and those who
advocated ending austerity - even if it meant going back to the
drachma.
What was unanimous, however, was sympathy for Tsipras. "He may not
have political experience but he is honorable and a fighter, said
Nikos Kapios, 80, a retired actor at the gathering.
At the weekend Tsipras reshuffled his cabinet, replacing several
ministers who opposed the new EU deal. With Syriza divided, Tsipras,
who remains popular with voters, may decide to hold another election
later this year. "If he doesn't make it, said Kapios, the blame is
with his own comrades.
(Additional reporting by Renee Maltezou, Paul Taylor, Alastair
Macdonald and Robert-Jan Bartunek in Brussels; and Elizabeth Pineau
and Julien Ponthus in Paris.; Edited by Simon Robinson and Richard
Woods)
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