Well, who could have ever seen this?
Apparently, because the EU and Greece never tire of drama, a last minute deal was reached to keep Greece in the Eurozone! Yea!!!! …… or something.
The International Monetary Fund has pledged to work with Greece and its European creditors to solve the country’s financial crisis after Monday’s bailout agreement.
The conditional agreement allows Greece to temporarily avert the prospect of abandoning the euro and the global financial chaos that would cause.
European Council President Donald Tusk tweeted shortly before 9 a.m. local time Monday that the so-called EuroSummit had “unanimously reached agreement” on a financial aid program that included what Tusk called “serious reforms” and “financial support” for the beleaguered Athens government. At a news conference later Monday, Tusk jokingly referred to the deal as an “a-Greek-ment.”
The deal calls for Greece, already reeling from harsh austerity measures, to cut back even further in exchange for more loans without which its financial system would surely collapse. It still requires approval from Greece’s parliament by the end of Wednesday.
“We managed to avoid the most extreme measures,” Greek Prime Minister Alexis Tsipras said. “Greece will fight to return to growth and to reclaim its lost sovereignty.” ……
…. The agreement came after months of often bitter negotiations and a summit that stretched from Sunday afternoon well into Monday morning. Tsipras had been holding out for a better deal to sell to his reluctant legislature in Athens this week, even as financial collapse grew closer by the day.
Tsipras also had to overcome the fundamental mistrust of many of his allies among the 18 other countries that use the euro. Just a week earlier, at the Prime Minister’s urging, Greeks had voted in a referendum to reject many of the measures he agreed to Monday, and the deal forced Tsipras to renege on many of his election promises.
A breakthrough came in a meeting between Tsipras, Hollande, German Chancellor Angela Merkel and Tusk, after the threat of expulsion from the euro put intense pressure on Tsipras to swallow politically unpalatable austerity measures in exchange for the country’s third bailout in five years.
“We took the responsibility of the decision to be able to avert the harshest outcome,” Tsipras said. “We managed to avert the demand to transfer Greek assets abroad, to avert the collapse of the banking system.” ….
… “Greece has a chance to return to the path of growth,” she said, but “it will be a long road.”
“The Greeks have to show they’re credible, show that they mean it,” said Jeroen Dijsselbloem, president of the eurogroup of eurozone finance ministers and a longtime critic of the Tsipras government.
The terms of the deal will be painful both for Greeks and their radical left-led government, which since its election in January had vowed to stand up to the creditors and reject the budget cuts they have been demanding.
But many seemed relieved that the country was not facing a messy exit from the euro. Kostas Lambos, a retireer in Athens, said things would be “difficult in the beginning” but people had to understand the severity of the situation. …..
… Greece had requested a three-year, 53.5 billion-euro ($59.5 billion) financial package, but that number grew larger by the tens of billions as the negotiations dragged on and the leaders calculated how much Greece will need to stay solvent.
Greece has received two previous bailouts, totaling 240 billion euros ($268 billion), in return for deep spending cuts, tax increases and reforms from successive governments. Although the country’s annual budget deficit has come down dramatically, Greece’s debt burden has increased as the economy has shrunk by a quarter.
The Greek government has made getting some form of debt relief a priority and hopes that a comprehensive solution will involve European creditors at least agreeing to delayed repayments or lower interest rates.
Greek debt stands at around 320 billion euros ($357 billion) — a staggering 180 percent or so of the country’s annual gross domestic product. Few economists think that debt will ever be fully repaid. Last week, the IMF said Greece’s debt will need to be restructured.
Well, it’s not a done deal. As the article notes, this has to be approved by their parliament. Expect riots, one way or the other.
All of the posturing, and blathering bs, and nothing will change.
Greece never really fully institutes the “reforms” they promise to do. No one can possibly believe that the new leftist government will fully implement the reforms when more moderate leftards refused to do so. They’re not going to do it.
And, they have no intention of ever actually paying back they money they’re “borrowing”. They can’t! They don’t know how! Indeed, I seriously doubt that there is anyone within the Troika which understands how to run a government without continued accumulation of debt. That’s not really anything to note, though. There certainly isn’t anyone in the US federal government who knows how to run the government without deficit spending. No one even pretends to plan for solvency, anymore.
Isn’t it interesting that Greek debt now stands at $357 billion, and the money they “borrowed” from the Troika stands at $268 billion? …. soon to be about …. well, $357 billion.