The Greek bailout deal resolves nothing

Greece's third bailout is bound to fail for the same reasons that the previous two programmes did. Even if Tsipras can survive, and fresh elections do not lead to a more radical government in the short term, the bailout’s economic incoherence will lead the agreement to unravel eventually. Greeks will then have ceded further economic sovereignty to creditors who they despise, who seek to pin the blame on the Greek government for the failure of past programmes to generate growth, and who have only marginally adjusted the failed strategy. When the mooted structural reforms fail to lead to recovery, which they will because fiscal policy is pushing the other way, the agreement will fall apart. Grexit is still very much on the table.

• Primary Source

ESO: Background information: The Greek debt crisis: Key sources http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: Greece agrees bailout deal, averts default http://www.europeansources.info/record/greece-agrees-bailout-deal-averts-default-tsipras-wins-bailout-vote-faces-widening-rebellion/

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