Greek deal update – FXWW Chatroom

Capital Economics’ Jonathan Loynes, the group’s chief European economist, who has this to say on the Greek deal: “Clearly, we will have to wait for full confirmation that a deal has been done, and its details. The Greek parliament may yet block the deal. But our first reaction is that this will merely delay the inevitable. With the crisis having done enormous damage to the Greek economy and financial system in recent months, it is impossible to imagine that conditions will now return to anything like normal. Capital controls are likely to have to remain in place and the additional austerity needed to build up the primary surpluses will weaken the economy further. In short, a Greek exit from the euro-zone MIGHT just have been kicked down the road a bit. But unless the new deal includes a substantial restructuring of Greek debt – which is unlikely – Greece’s future inside the euro-zone remains under huge doubt. “ 

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