Ten years after the 2015 Greek bailout referendum under Prime Minister Alexis Tsipras and his Syriza government (September 2015 – July 2019), the minutes of the July 6 Council of Political Leaders meeting were revealed. Leaders met the day after citizens voted “no” to international bailout terms meant to address the country’s severe economic crisis and debt.
Greeks were asked to vote either in favor of or against bailout terms submitted by European Commission President Jean-Claude Juncker. Ultimately, 61.31 percent of voters rejected the proposal from creditors. Tsipras then called for a meeting of political leaders on July 6, one day after the referendum in Greece.
The summit, which began at 10 am and ended at 4:50 pm, sought to secure broad political support ahead of a crucial Eurozone summit. Despite criticism, opposition leaders showed a willingness to back the PM of the time. The excerpts, presented exclusively by the media outlet in.gr, are of particular interest, as they reveal key differences in the stance ultimately adopted by the parties.
The timeline of Greece’s referendum
Greece received a draft agreement in June 2015 following ongoing negotiations between the federal government and European Union officials. The agreement was based on the extension of austerity measures but no clear plan for debt relief was provided. Essentially, the proposal required long-term supervision of the Greek economy.
Although the Tsipras government expressed agreement with some of the arrangements, it rejected a program of indefinite duration that would not lead to national economic recovery. Following this, former Prime Minister Alexis Tsipras called a referendum throughout Greece on July 5.
Recently, minutes were leaked from the meeting of the Council of Political Leaders, an informal body comprised of the leaders of the Parliamentary parties. The meeting took place a day after the referendum in which 61.3 percent of Greeks who voted indicated they were not in favor of the proposal the Greek government was invited to accept.
Political leaders’ joint statement following Greece’s referendum
The political leaders issued the following joint statement upon the conclusion of their meeting:
“The recent verdict of the Greek people is not a mandate for a break, but rather, a mandate to continue and strengthen efforts to achieve a socially just and economically viable agreement. To this end, the government assumes responsibility for continuing the negotiations. Each political leader will contribute accordingly within his institutional and political role.”
The shared objective was to find a solution that would:
- sufficiently meet the country’s financing requirements;
- implement credible reforms that fairly distribute burdens and support growth with minimal recession;
- establish a strong, front-loaded growth plan focused on reducing unemployment and fostering entrepreneurship;
- and initiate meaningful dialogue on making Greece’s public debt more sustainable.
A top immediate priority was reestablishing liquidity in the financial system through coordination with the European Central Bank (ECB). The Greek Prime Minister also committed to promptly updating political leaders on the summit’s outcomes and the broader progress of the negotiations once they concluded.
“It should be noted that, based on the public minutes, New Democracy (ND), Panhellenic Socialist Party (PASOK), and Potami signed the joint communiqué issued at the meeting,” it was said. “This communiqué served as a cross-party ‘mandate’ for Tsipras to negotiate with Greece’s creditors on behalf of the country.”
Prokopis Pavlopoulos statement
As President of the Hellenic Republic, Prokopis Pavlopoulos knew that the meeting of political leaders under his chairmanship had to produce results given the circumstances at the time.
“In order to facilitate the resumption of negotiations, this council must make it clear that the overwhelming majority of political forces do not and never have questioned Greece’s course in Europe and the Eurozone,” he said in his opening speech before Prime Minister Alexis Tsipras and other political leaders of the time.
Tsipras’ address to political leaders
According to published excerpts, when Alexis Tsipras took the floor, he firmly stated that the referendum question was clear, asking citizens to either approve or reject the proposed bailout terms. It was not a vote on whether Greece would remain in the EU.
“I would like to emphasize, with regard to the President of the Republic’s speech, the question and the result of the referendum. I think the President said what was obvious: the responsibility for presenting the question to the people lies with the government and the National Delegation, as stipulated by the Constitution and the law. The question was clear,” Tsipras maintained.
Emphasizing the need for the ECB to accept the Bank of Greece’s request for emergency liquidity until an agreement is reached, he added:
“It asked the Greek people whether they approve or reject the proposal put forward by the institutions to the Greek government. As Prime Minister and on behalf of the Greek government and all political parties, I am called upon today to chart the country’s negotiating strategy and course for the coming period with respect for the popular verdict.
The negotiations are at a critical stage for practical and humanitarian reasons. The country is facing a humanitarian crisis if the ECB’s stance remains negative.”
The other attendees were in complete agreement with the Greek PM on this point with the exception of Dimitris Koutsoubas, the leader of the Communist Party of Greece (KKE), who held a distinctive position during the 2015 Greek bailout referendum initiated by Tsipras and requested a different ballot altogether, one that diverged from both the bailout proposal presented by the creditors and the Greek government’s counter-proposal. The Communist party believed the referendum generally presented a “false dilemma.”
Regarding the popular mandate, Tsipras discussed an agreement with the partners for the following 24 months that would cover the country’s financial needs and provide a definitive way out of the crisis, ruling out scenarios whereby the country would exit the Eurozone. Prior to presenting this final proposal to the public, the Greek government attempted to establish conditions for ongoing negotiations with the institutions.
Even after the referendum, the Greek administration persisted with this effort, and on June 30, it submitted a request to the European Stability Mechanism (ESM) for a two-year loan agreement with full financial coverage and sustainable debt restructuring. “The government submitted the framework of the Juncker proposal, which came after the creditors’ ultimatum, as a framework of prior actions for this agreement,” Alexis Tsipras stressed at the meeting of political leaders.
He added that the improvements in the government’s counterproposal pertained to critical issues, such as reduced Value Added Tax (VAT) on the islands, pensions, Social Solidarity Allowance for Pensioners (EKAS), taxation of farmers, and collective bargaining, and that these improvements could “make this difficult proposal fairer in terms of the burden of austerity on the Greek people.” Tsipras also mentioned that, in addition to full coverage of the country’s financing needs for the subsequent two years, the Greek government’s proposal included a provision for debt restructuring.
“Austerity measures that are unacceptable to society without corrections, secured financing, and debt restructuring are a recipe for failure. My assessment is that we must agree on this today,” concluded Tsipras—backed by the popular mandate of the referendum—in speaking about his government’s negotiating position with creditors. Tsipras would go on to demand an agreement with prospects and sustainability so that the issue of whether or not Greece would remain in or exit the Eurozone would not be presented yet again in the near future.
In addressing political leaders, he guaranteed a reasonable time frame during which strategies for the economic revival of the country would be implemented. Furthermore, he demanded that the agreement be accompanied by a strong package of development investments in consultation with the Commission.
Tsipras wrapped up his statement by saying:
“I propose that we discuss and consider your positions so that at the summit tomorrow, we can negotiate a medium-term agreement that includes guaranteed financing, reliable reforms, and a robust package of development investments and commitments to debt restructuring.”
New Democracy and other parties: Red lines set by Meimarakis following the referendum in Greece
At that time, the New Democracy party was represented by its interim president, Vangelis Meimarakis. In his opening speech, he addressed Alexis Tsipras and declared that if the proposal had been put to a referendum as it was presented at the time in the Council, everyone would have voted “yes” and hence in favor of it.
However, in response to the PM’s initial proposal, Meimarakis outlined New Democracy’s stance on the accusations against the lenders: “For me, there is no such thing as sustainable and unsustainable debt. There is only manageable and unmanageable debt depending on the prevailing conditions at the time and each year.”
“If there is growth, there are measures that can create circumstances that will ultimately make GDP sustainable compared to debt,” he concluded.
Moreover, the president of the centrist and social-liberal political Potami party of the time, Stavros Theodorakis, said that, based on Alexis Tsipras’ speech to the Council alone, he would support his efforts vis-à-vis the lenders “without hesitation.”
“If we only listened to Tsipras,” he said, “we would immediately vote ‘yes.'”
PASOK President of the time, Fofi Gennimata, had initially suggested a meeting of leaders at the “five o’clock” stage of the process but agreed with Alexis Tsipras’ strategy, stating that she would support and sign the joint statement.
She also remarked that she had sent a letter to the social democratic parties of Europe, informing them of Greece’s demands and emphasizing the need for development measures to stimulate the economy. Gennimata told Tsipras that if he presented his proposal to the Council for a vote, she would ensure unanimity. “Tsipras’ proposal ensures unity,” was her general take on things.
The positions of ANEL and the Communist parties: “Lenders trying to subdue opponents” and disagreement
In one of his speeches, Panos Kammenos, the leader of the Independent Greeks (ANEL) party and a member of the government alongside the Coalition of the Radical Left – Progressive Alliance (SYRIZA), expressed the view that the main issue for all of them was achieving the political defeat of the ruling SYRIZA party, i.e., the defeat of the Left, despite the fact that he had formed a governing coalition with said party.
Dimitris Koutsoubas, the General Secretary of the Communist Party of Greece (KKE), on the other hand, announced that his party adamantly and permanently did not approve of the communiqué due to disagreements with Europe and its policies, including those of the SYRIZA government.