June 27, 2015 marked a pivotal moment in the financial crisis of Greece when Prime Minister Alexis Tsipras of that time called a referendum on the EU’s proposals for a third bailout.
After five tumultuous months of negotiations between the newly elected SYRIZA-ANEL government and its European partners, talks had reached an insurmountable impasse. Creditors—the European Commission, the European Central Bank, and the International Monetary Fund (formerly known as the “Troika”)—remained unyielding on austerity measures.
With Greece’s second bailout program set to expire on June 30, the specter of default loomed large. An ultimatum delivered in Brussels on June 25-26 left Athens with a stark choice: accept new proposals or face termination from the program.
Tsipras’ referendum gamble
Faced with a painful compromise, Prime Minister Alexis Tsipras orchestrated a political surprise. He decided to transfer the burden of the decision to the Greek people.
The concept of a referendum on creditors’ demands was unprecedented in modern Greece. It was the first nationwide plebiscite since 1974 (which concerned the monarchy) and the only one in modern history unrelated to the form of government. This initiative sent shockwaves through the domestic and international spheres, as a referendum on economic policy amidst a bailout program had previously been unimaginable.
In the early hours of June 27, 2015, shortly after midnight, Alexis Tsipras addressed the Greek people in a televised speech, abruptly announcing a referendum for Sunday, July 5, 2015. The question posed was whether to accept or reject the proposed agreement submitted by the institutions on June 25.
“They asked us to implement the memoranda, their goal is to humiliate the Greek people. Responsibility towards the country obliges us to respond to the ultimatum…,” Tsipras declared, framing the issue as a matter of national dignity.
Looking directly into the camera, he dramatically challenged the populace: “Decide sovereignly and proudly, as the history of the Greek people dictates. To authoritarianism, send a democratic response.”
While the referendum question was technical, concerning the “Draft Agreement” and attached texts on reforms and debt sustainability, it effectively distilled into a simple “Yes” or “No” to the lenders’ proposal.
The government unequivocally advocated for a “No” vote, seeking to bolster its negotiating position, and warned that a “Yes” would entail further austerity. Notably, Tsipras had not informed his European counterparts or sought Eurogroup approval for a program extension, intensifying the dramatic and sudden nature of the announcement.
Greece was in panic after the referendum announcement
The public reaction was immediate and marked by anxiety. News of the referendum spread globally overnight, prompting many Greeks to rush to ATMs, fearing a banking panic. By early Saturday morning, lines had formed at ATMs across Athens as uncertainty fueled widespread fear. These initial images portended the turbulent path ahead for the Greek economy and society.
Constitutionally, the referendum required parliamentary approval. An extraordinary plenary session was convened on June 27, 2015, resulting in a stormy debate that lasted late into the night. Ultimately, Parliament approved the referendum with 178 votes in favor and 120 against, with two MPs absent.
This outcome reflected an unusual broad majority, extending beyond the government’s own parliamentary strength. SYRIZA and Independent Greeks MPs voted in favor, as did the entire Golden Dawn Parliamentary Group. Opposition parties—New Democracy, PASOK, Potami, and the Communist Party of Greece—voted “against,” vehemently opposing the move.
The unlikely alignment with Golden Dawn drew significant criticism, though the government, through then-Minister of State Nikos Pappas, celebrated the decision as the dawn of a “wonderful day,” envisioning July 5 as a “celebration of Democracy.”
Fierce opposition and international outcry
Tension ran high during the parliamentary debate. Antonis Samaras, leader of the main opposition New Democracy, launched a scathing attack, accusing the government of steering the country toward disaster.
“The Greek people in the referendum will not decide ‘yes’ or ‘no’ to austerity, but ‘yes’ or ‘no’ to the euro,” Samaras warned, asserting that the true dilemma was Eurozone membership. He branded the referendum a “parody” and argued Tsipras’ proposal was “dragging the country out of Europe.”
Other opposition leaders echoed these criticisms, with PASOK, Potami, and KKE officials denouncing the action as unconstitutional, citing prohibitions on referendums concerning fiscal matters. The KKE dismissed the dilemma as false, urging voters to cast invalid ballots or abstain, believing both “Yes” and “No” would lead to further memoranda.
Internationally, the Greek government’s decision stunned and annoyed European partners. Hours after Tsipras’ announcement, the Eurogroup convened an emergency meeting. Despite the presence of then-Finance Minister Yanis Varoufakis, Eurozone finance ministers rejected Greece’s request for a short program extension. In an unprecedented move, the remaining eighteen ministers continued the meeting without Greece to discuss the safeguarding of the Eurozone from potential Greek shock.
Eurogroup President Jeroen Dijsselbloem expressed regret, calling it a “sad day for Greece.” European Commission President Jean-Claude Juncker, in a dramatic press conference on June 29, stated he felt “betrayed” by Athens’ unilateral move, lamenting that “the momentum for an agreement was unilaterally destroyed by the announcement of the referendum and the decision of the Greek government to support the ‘no’ vote.”
German Finance Minister Wolfgang Schäuble and Slovak Prime Minister Robert Fico echoed this sentiment, with Fico harshly remarking: “The Greeks have gone crazy if they think they can blackmail Europe with a referendum.”
Financial markets reacted nervously, with international stock markets falling and “Grexit” fears intensifying. Global media highlighted the dramatic developments, emphasizing Greece’s precarious position “on the brink of exiting the Eurozone.”
Capital controls and Greece divided
The images of panicked Greeks queuing at ATMs spread globally, prompting fears of a bank run. Consequently, on Sunday, June 28, the Greek government imposed a bank holiday and introduced capital controls—unprecedented measures for a Eurozone country—limiting withdrawals to sixty euros per day and restricting capital movements abroad. These controls took effect on Monday, June 29, and banks remained closed until after the referendum, profoundly disrupting daily life and deepening public division.
The referendum prospect deeply polarized Greek society. The government and “No” supporters championed the referendum as a supreme democratic moment, urging the populace to resist. Rallies against austerity and “humiliation” filled the streets, with slogans like “On July 5th we make history—No.” Tsipras himself participated in these rallies, asserting that a “No” vote would strengthen Greece’s negotiating position and not lead to a break with Europe.
Conversely, “Yes” supporters, largely from the opposition, argued the true dilemma was “In or out of the euro,” fearing a “No” would lead to isolation and potential EU exit. Large pro-“Yes” rallies advocated for Greece’s European path. The opposition accused the government of endangering Greece’s European future “out of obsessions.”
While the government spoke of dignity, opponents predicted disaster. Antonis Samaras dramatically declared that “no means drachma and poverty.” Most private media openly sided with “Yes,” running continuous broadcasts and headlines on Grexit and national tragedy, leading to accusations of a fear campaign. The atmosphere leading up to the referendum was explosive, marked by heated exchanges and an unprecedented societal schism.
The historic vote and its unforeseen aftermath
The referendum of July 5, 2015, proceeded as planned, becoming a defining moment in modern Greek history with a high turnout of 62.5 percent. The government achieved a resounding victory: 61.31 percent voted “No,” rejecting the institutions’ proposal, while 38.69 percent voted “Yes.” The “No” vote prevailed in all electoral districts, sending a powerful message.
The political fallout was immediate. That same evening, Antonis Samaras resigned as leader of New Democracy, accepting responsibility for the “Yes” camp’s defeat. Hundreds of thousands of “No” supporters celebrated in the streets of Athens and other major cities, waving Greek flags and chanting slogans. The night was electrifying, with many feeling they were witnessing a historic stand against austerity.
Greece referendum: The “No” that became a “Yes”
However, post-referendum developments brought an unprecedented reversal. Despite the clear popular mandate, the Tsipras government returned to the negotiating table within days.
Facing suffocating banks and a paralyzed economy, Tsipras confronted extremely tough demands from European partners. Ultimately, in the early hours of July 13, 2015 after a marathon Brussels summit, Tsipras agreed to a new, third bailout package with terms even stricter than those the voters had just rejected.
This abrupt about-face, widely dubbed a “kolotoumba” (somersault), saw the government, which had campaigned for a “No,” sign an austerity agreement shortly thereafter. Finance Minister Yanis Varoufakis, a staunch “No” advocate, resigned the day after the referendum, paving the way for this policy shift. While the third memorandum was approved by Parliament in August 2015, it resulted in a significant split within SYRIZA, with around 40 MPs disagreeing and leading to Tsipras’ call for early elections in September 2015.
The 2015 referendum left an indelible mark on Greek history. It represented the climax of the Greek debt crisis and exposed deep societal divisions. For some, it was an act of resistance and a claim for popular sovereignty against European economic orthodoxy. For others, it was irresponsible adventurism that exacted a heavy economic toll and brought Greece to the precipice of Grexit.
The week from June 27 to July 5, 2015 undoubtedly stands as one of the most dramatic periods in post-democratic Greece, characterized as “a week of fear and closed banks.”
The referendum split Greece in two, leaving wounds that, to some extent, persisted in the years that followed. Despite the dramatic policy reversal, the Tsipras government ultimately remained in power, winning the September 2015 elections, albeit now tasked with implementing memorandum policies. Greece successfully avoided exiting the euro but paid a heavy price in recession and further austerity measures.
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