Third bailout agreement

Several days after the bailout referendum, on 12 July 2015, the Greek Prime Minister, Alexis Tsipras came to an agreement with lenders for a new ESM program. Greece will receive a loan of up to €86 billion, which will be received gradually from 2015 until June 2018, including a buffer of up to €25 billion for the banking sector. In return, Greece will have to streamline the VAT system and broaden the tax base to increase revenue, reform the pension system, safeguard the full legal independence of the Hellenic Statistical Authority, automatically cut public spending to generate primary surpluses, reform justice with a view to accelerate the judicial process and reduce costs, implement all OECD toolkit I recommendations, modernise labour market legislation, modernise and strengthen the Greek administration, revoke the laws passed by the Tsipras government counter to the February 20 agreement—except for the one concerning the "humanitarian crisis"— or identify clear compensatory equivalents for the vested rights that were subsequently created (e.g. for the rehiring of fired public servants), recapitalize the banks, and privatize 50 billion of state assets.^[4] To help support growth and job creation in Greece up to 2020, the European Commission will help mobilise up to €35 billion to fund investment and economic activity, including in SMEs. The Investment Plan for Europe will also provide funding opportunities for Greece.^[5]

On 14 August, after a rancorous all-night debate, the Hellenic Parliament backed the country's new bailout deal, although more than 40 MPs from Syriza either voted against the deal or abstained, and Tsipras had to rely on the support of three opposition parties: New Democracy, The River and PASOK.^[6] Following the Parliament's decision, the Eurogroup welcomed the agreement between Greece and its lenders, and initiated the launching of the national procedures required for the approval of the new ESM program. These national procedures were concluded by 19 August, and Greece received the first disbursement of the initial tranche of up to €26 bn.^[7]

Government's resignation and snap election

Although Tsipras passed the bailout agreement through the Parliament and did not face a no-confidence motion, the fact that 43 of Syriza's 149 MPs had either opposed the bailout or abstained meant that he had effectively lost his parliamentary majority. Therefore, on 20 August, following the first disbursement of the initial tranche of the third bailout agreement, Tsipras submitted the resignation of his government to Prokopis Pavlopoulos, the President of Greece. Tsipras asked Pavlopoulos for the earliest possible election date (20 September), and publicly argued that "the present Parliament cannot offer a government of majority or a national unity government." In a televised address to the Greek people, Tsipras recognised that he did not achieve the agreement he expected before the January elections. Following Tsipras' resignation, the Constitution required Pavlopoulos to ask the second- and third-largest party in Parliament to form a government.^[8]

Some analysts' expectations that these two parties—and especially New Democracy—could waive their three-days exploratory mandate right to accelerate the procedures were not confirmed. Vangelis Meimarakis, the Leader of the Opposition, received the first exploratory mandate on 21 August, stating that he has the "political obligation and responsibility to exhaust all the options".^[9] Failing to form a government, Meimarakis returned the mandate to the President on 24 August. The same day, Panagiotis Lafazanis, the president of the third-largest party in Parliament, the newly formed Popular Unity, was handed the third and final exploratory mandate. Popular Unity was founded on 21 August by 25 anti-austerity and anti-bailout MPs, who split from Syriza and were largely affiliated to the party's Left Platform.^[10] After having failed to attract coalition partners for a new government, Lafazanis returned the mandate on 27 August. In a meeting with Pavlopoulos, Lafazanis asked the President to set a date for election no earlier than 27 September and to convene a council meeting of political leaders.^[11] However, given that Syriza, the Independent Greeks and the Communist Party had made clear that they had no interest in participating in such a meeting, Pavlopoulos opted for entering into telephone consultations with each political leader individually. After the conclusion of these consultations, which proved to be fruitless, Pavlopoulos named Vassiliki Thanou, President of the Court of Cassation (Areios Pagos), as interim prime minister, with the task of leading Greece to the elections.^[12] On 28 August, Pavlopoulos issued a presidential decree for the dissolution of the Parliament and the holding of a snap legislative election on 20 September 2015.^[13] The President's decision not to convene the council meeting of political leaders and to call the elections earlier than 27 September was fiercely criticised by Lafazanis; in an official statement, Popular Unity called the President's actions "a raw and provocative violation of both the letter and the spirit of the Constitution". However, other prominent politicians of the Opposition, such as PASOK's Evangelos Venizelos, who is also a Professor of Constitutional Law, suggested that Pavlopoulos acted within the rules and without violating the Constitution.^[14]

Candidates' debates