The Greece package

Stuff reports:

Greece won conditional agreement to receive a possible €86 billion (NZ$141.7 billion) over three years. As part of the deal, euro zone finance ministers will discuss on Monday (Tuesday NZT) how to keep Greece financed during the time it will need to agree a bailout, but none of the options appear easy, officials said.

Athens must meet a tight timetable for enacting unpopular reforms of value added tax, pensions, budget cuts, bankruptcy rules and an EU banking law that could be used to make big depositors take losses.

Wow that Marxist Government really cut a good deal. Six months of lecturing Europe really paid off.

Personally I’m sceptical that the Greek economy can ever exist within the Euro. The corruption, entitlements and non payment of taxes seems too entrenched. I hope I’m wrong, but I suspect they will need a 4th bailout at some stage.

It would have been harsh in the short-term, but they actually need to leave the Euro, and have their own currency. This would be worth little, but would  allow the currency to reflect the economy that stands behind it.