Greek Prime Minister Alexis Tsipras announced his resignation on Thursday to open the possibility of early general elections.
By June 22, the Greek Government was forced to pass laws to fundamentally tighten Greece's legal and banking system. This was a precondition the troika demanded, because the Greek banking and regulatory system had been in need of reforms for decades.
However, Tsipras' party has been split over the conditions and he is under severe pressure at home from many who say he has given in to the hated Troika and has gone against the fundamental principle of his party, which is to fight against the tough austerity measures.
Many feel that the pension and tax reforms that Tsipras signed up to are too much and that other reforms — including shops opening on Sundays, longer opening hours, changes to pharmacy ownership, new milk and bakery rules and the sale of state assets, including ports and mass privatization — are a step too far.
His threat of a snap referendum could plunge Greece into another crisis, if the party goes against what Tsipras agreed with the troika in return for a third bailout.