Following a marathon 17 hour session that dragged on into the early morning hours, Eurozone leaders finally agreed on the terms for a third bailout for Greece. With the prospect of a ‘Grexit’ looming over their heads, European leaders negotiated the terms of the third bailout deal and they were accepted by Greek Prime Minister Alexis Tsipras. He will now have to get key measures of the deal passed through parliament. That process will not easy. The terms of the third deal are not as generous as the ones included in the deal that Greek voters turned down in last week’s referendum. In fact, the reaction of many in Greece to the harsh terms has been one of anger and humiliation. Tsipras was elected in January on a platform of rolling back austerity measures. His dangerous game of brinkmanship took Greece to the edge of the abyss and some European leaders, especially Angela Merkel, called his bluff. Tsipras was forced to go to Brussels this weekend with hat in hand and beg for a third bailout without any room to maneuver.
The full text of the agreement can be found here: http://news.bbc.co.uk/2/shared/bsp/hi/pdfs/13_07_15eurosummit.pdf
Despite Monday morning’s sense of relief, the deal is not complete just yet. The prospect of a ‘Grexit’ has not disappeared entirely. As I stated above, Tsipras still has to get approval from parliament. By all appearances, Tsipras is going to be faced with at least some political opposition. It remains unclear if this will force him to call for new elections in the coming months, however, the possibility is real. In the meantime, he has to convince the voters that this is a negotiated settlement and not a surrender of Greek sovereignty.
The crisis is not yet over, however, if parliament agrees to the terms of the deal, the light at the end of the tunnel will be much closer than it has been at any point in the last thirty days.