garshasp
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Yes that is the case. No major decision can be made without Khameneis approval. During the campaign, Rouhani said he acted on some of his promises of 4 years ago, some other promises 'they wouldn't let him' act on.I see, it's quite a complex system then. So that means Khamenei the supreme leader is above the President then? If so, does that mean the President has to consult with him on every critical/important polices concerning the country? If that's the case, then won't be easier for the President to avoid responsibilities in case things go wrong(he can be like :my hands are tight )?
Moreover, even if what you said about why khatami and others like him are under house arrest is true(which seems to be the case) why will they still maintain such restrictions on former leaders/top officials of the country ? It's been over 8years now, since those elections were contested and violently suppressed, surely they don't pose a threat any more do they?
Even the nuclear deal which extremists here hate and blame Rouhani for, was approved by Khamenei. If Khamenei didn't agree to it, Rouhani could not go against his wishes.
Easiest way to think of it is somewhat like absolute monarchy
Khamenei = King, head of state
Rouhani = Prime minister, head of government
As for the Khatami / opposition figures, who knows why the restrictions still exist...probably because the regime are still afraid of what they might say or do.