After countless discussions during the last five months, and now after haggling non-stop, even through the night, for more than 24 hours, the EUROZONE has finally managed to agree the basis of another bail-out for Greece, the third during the last five years.
This saga will continue because some of the countries in the EUROZONE, particularly Germany, need the official backing of their Parliaments for the bail-out proposed !
It must be understood that Greece has outstanding Financial Debts towards the EUROZONE, the International Monetary Fund (IMF) and the European Central Bank (ECB) of 320 Billion Euros. The new Bail-out now proposed could raise that by at least 85 Billion Euros during the next three years. Some of the countries in the EUROZONE are hesitant about backing a 3rd Bail-out for Greece !
The EUROZONE expects the Greek Parliament to adopt immediately laws which will lead to important changes to make the Greek Economy profitable. The age of retirement will be increased, pensions cut and VAT sales taxes will go up. Tsipras of the far Left was not elected to do this but....
In a Referendum last week, Greeks voted against a further dose of austerity; but after the pressure from eurozone politicians, Tsipras realised that these unpopular measures are necessary to rebuild the economy and to retain the Euro as the currency.
Merkel expects a rough ride in the German Parliament, but knows that Italy and Spain, who may need Financial aid from the EUROZONE, are closely watching the proceedings. Germany is a bouyant country but its electors do not really want to prop up financially, the whole EUROZONE just to save the EURO !
To say the least, the coming weeks may reveal some unexpected reactions. This 3rd Greek Bail-out could become a bumpy ride !
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