Some analysts are saying the Brussels summit is a victory and the Euro is safe, Greece did not default, and everything is good again. However, there is a clear problem in the solution offered, it is the same solution that was applied before, and there is no reason to believe that the result will be any different this time.
To get out of the already existing debt of €317 billion, Greece has now had to take on an additional €86 billion in debt, not really solving its problems. The Germans and the French claim that Greece will come out of the crisis faster this way, and will recover within three years.
But in line with what many think, the IMF has warned that what Greece needs more than a bailout, is debt relief. The most likely scenario is that we are going to be back in the same situation and the Euro-Zone will be on the verge of a disaster again, in a few short years.
Not a Bright Outlook
What is additionally troubling is the level to which Greece just relinquished some of its independence. The country did not go into chaos just yet, but from now on, it will be Brussels who decides what is going to happen with its budget.
The agreed on cuts that need to be made and the additional taxes will, for the most part, be coordinated by other countries. The constitution will also need to be adjusted to reduce pensions, and despite what the still deeply religious Orthodox population may think of it, stores will now be open on Sundays, which in itself is a massive change, to a population reaching back thousands of years.
As a result, the administration and the judiciary will be altered and nearly €50 billion of the country’s assets will be handed over to Brussels for “safekeeping”. While there are only some relatively minor protests in Greece so far, when the new measures start to take effect, default and exiting the Euro might seem like they were the better option.