European leaders announced Monday morning that they had reached a deal meant to resolve Greece’s debt crisis, The New York Times reports. The new bailout for Greece would involve both “serious reforms” and “financial support,” said Donald Tusk, president of the European Council.
Last week Greek voters issued a surprisingly loud and clear statement of support to Greek Prime Minister Alexis Tsipras, and defiance to European authorities and the International Monetary Fund. In the referendum celebrated on July 5, the Greeks said no to the bailout deal proposed by the country’s creditors.
The agreement on the new bailout deal is tough on Greece, but better than alternatives that have been discussed in the frantic negotiations of last week. It appears that Grexit – the forced exit of Greece from the Eurozone and perhaps from the European Union itself – has been avoided for now.
The question remains whether the current agreement and the detailed bailout plan that is expected to be unveiled in the next hours or days are solid enough to provide a stable and sustainable solution to the Greek crisis. The situation in Greece remains very difficult – so difficult, in fact, that the