The announcement of a proposed new Greek bailout, and the enhanced institutional mechanism to reinforce it, has cheered markets today. It may even cheer them tomorrow, but after that…
The full text of the deal can be found here. I enjoyed the first sentence of the second paragraph:
The recovery in the euro area is well on track and the euro is based on sound economic fundamentals.
Much of the announcement is written in deliberately (or inevitably) obscure language, so this guide (based on earlier draft documentation) by Re-Define will come in handy for those wanting to know more. I liked this:
7. All other euro countries solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.This does not mean anything.