Greek debt deal - Breakthrough or ball and chain? by Yiannis G. Sakkas and Yiannis G. Bazinas

On 22 June 2018, the Eurogroup reached what was termed a “historic” deal on a debt relief for Greece, a momentous achievement and the final step for Greece’s return to economic normality, after almost a decade of European and IMF bailouts. The debt package was portrayed in the public domain as “an historic moment for the Eurozone”, “the end of the Greek crisis” and even “the biggest act of solidarity that the world has ever seen”. However, the same enthusiasm is not shared by all. Concerns still persist that the agreed measures are not sufficient to restore debt sustainability. Even worse, the deal is conditional upon a continuation of strict austerity measures, which may prove the final nail in the coffin for the national economy. To avoid this, the future of the Greek debt relief inevitably requires a debt write-down.