Donald Tusk stated in a press conference ‘we have reached an agreekment’ and confirmed that both Greece and the EU want to start implementing an (European Stability Mechanism) ESM program for Greece which means they will receive continued financial support.
The decision gives Greece the chance to recover financially with the support of the members of the Eurozone he added that it would not be without strict conditions.
While the head of the Eurogroup’s Finance Ministers, Jeroen Dijsselbloem stated that a €50 billion trust fund will be set up using Greek government assets. The fund will then be used to refinance its banks help pay down the country’s debts. A panel of experts will be recruited in the coming days to decide which assets to use and how the funds will be expended, either by privatisation or re-investment. Eurozone leaders have demanded that Greece pass laws on reforms by Wednesday night, before a financial rescue can take place.
Although the apparent agreement helps to quash fears that Greece could be heading for a euro zone exit there is also some uncertainty that Greek Prime Minister Mr Tsipras can get such reform measures passed through parliament.
In spite of the apparent submission of Greece to lender demands, the Commission’s President Mr Juncker was keen to point out that no side had lost out by the deal. There are no winners and no losers, the Greek people have not been humiliated and the other European governments have not lost face. It is a typical European agreement that has ended with both parties pleased.