Abstract
Significance The agreement testifies to the wish of all parties to avoid a euro-area breakup. It averts the risk of Greece's immediate exit from the single currency. However, the risk of Grexit remains. The deal involves Greece accepting restrictions on its economic sovereignty, and the euro-area aligning with the tough conditionality demanded by Germany and other 'hawks'. Parliamentary rejection in Greece and/or by prospective creditors might yet upend negotiations on a new bailout. Impacts The crisis has damaged Germany internationally, because of the tough line it has taken, and strained Franco-German relations. The ECB's status as a politically independent institution is likely to be damaged however Greece-creditor relations develop. Eurosceptics are likely to gain from the demonstration of the extent of economic policy sovereignty loss required by euro-area membership.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
