An agreement on Greek debt that satisfies both sides

Financial Times, Jun 22, 2018
by Tony Barber

There was an unmistakable note of triumph in the words with which Mário Centeno, the Portuguese head of the eurogroup of eurozone finance ministers, announced the agreement that concludes eight years of emergency bailouts for Greece. “Greece joins Ireland, Spain, Cyprus and my own country Portugal in the ranks of euro area countries that turned around their economies and once again stand on their own feet,” Mr Centeno said.

It is certainly a cleverly crafted deal, and each side — Greece and its eurozone creditors — gets enough from it to hail it as a success. For Germany and its allies, there is no explicit write-off of Greek debt, which should ease domestic political pressure on chancellor Angela Merkel’s government from critics suspicious that Berlin too often picks up the tab for the eurozone.

To continue reading, click here.