Monday 13 July 2015

GREECE AVOIDS A "GREXIT" !


After almost six months of inconclusive discussions, EUROZONE Leaders rightly decided it was time that an interim agreement at least was necessary.

The final details of the ultimate agreement will only become available in a few weeks time at the earliest.  

However, in the meantime the saliant points of this agreement are :

1)  There will be no "Grexit" - Greece will remain in the EUROZONE.
2)  This Wednesday, July 15, 2015, the Greek Parliament  will have to introduce measures of austerity to ensure the Greek Economy again becomes profitable. 
3)  EUROZONE countries, like Germany, must obtain the agreement of their Parliament on the proposed measures.

Among the salient points covered is the principle of Financial support for Greece.  There is no "Debt Write-off" which Tsipras said he wanted before his election.  However, there is a third Financial Plan which provides help for Greece to cover the expected lack of income in the coming years.  This could amount to about 85 Billion Euros.

Furthermore, it is expected that the repayment dates of previous debts will be extended.  This indicates there will be a type of Moratorium. 

These events will certainly provoke reactions and commentaries in several countries and their Parliaments !  Greece has been saved, but there are other countries which may also consider they need help.

It has taken almost six months to arrive at this temporary result !  Does this in itself not indicate that EUROZONE rules and procedures need to be tightened ?  Should there not be early warning systems in place to prevent things like a possible "EURO - EXIT" ?

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