After many diversions and an overnight session it seems the EU eurozone countries have accepted the final proposals of the Greek Government. These include extensive austerity measures required of Greece in order to justify the payment of a further 50 billion euros to bail-out Greece from defaulting on its loan payments, going bankrupt and possibly leaving the eurozone. Since the left-wing Greek Govt. of PM Tsipras was elected to oppose austerity forced on the Greeks by the eurozone, this final proposal represents a real turnaround to deal with reality rather than face the unpleasant results of defaulting and having to leave the eurozone. Neither Greece nor the eurozone countries wanted to see that happen. By the way there are 19 countries in the eurozone and an additional nine EU countries (Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, United Kingdom) that are not.
This is in fact the third Greek bailout by the eurozone. German Chancellor Merkel is the prime mover in that community and she stated adamantly that there will be no forgiving of the Greek debt, something that Tspiras had fought for. In the end he was forced to forgo his dreams, give up his socialist visions and accept the harsh terms of austerity that he had rejected before, in order to avoid a worse economic plight for Greece. There will be no Grexit, but there will be plenty of austerity for the Greek people. Tsipras introduced the referendum and campaigned for a “No” vote, but then had to turn around and accept the capitalist terms of the eurozone leaders. It was French PM Hollande who played a conciliatory role between the hard line Merkel and Tspiras.
Part of the deal includes a bailout for the Greek banks that have been closed for 2 weeks. The deal recapitalizes them and guarantees their deposits and allow them to reopen. This will please the Greek people. Also part of the funds will be dedicated to growth of the economy. But, the deal is nor clinched yet, all the measures have to be accepted by a vote of the Greek Parliament within a few days. It is unclear if Tsipras can bring along his far-left Syriza party to accept these austerity measures that he campaigned against. But, it is now or never, there will be no further deals, take it or leave it. This is the price Greece must pay for the many years of raiding the economy to keep the population high on entitlements and generous pensions and short working weeks and avoiding taxes (for example the whole Greek shipping industry did not pay a drachma in taxes). Now the game is up, the money is due and Greece must submit.