Europe

Reaction: Eurozone agrees new Greek bailout package

Eurozone leaders have agreed a crucial package of measures they hope will help Greece resolve its debt crisis. The move is part of a comprehensive package to shore up the single currency and prevent market "contagion" from Greece.

Here is some reaction to the deal:

European Commission President Jose Manuel Barroso

We needed a credible package, we have a credible package. It deals with both the concerns of the markets and citizens. It responds also to the concerns of all member states of the euro area.

It is a package that every government has signed up to. For the first time in the crisis, politics and markets are coming together.

Greek Prime Minister George Papandreou

We now have a programme and a package of decisions which create a sustainable path for Greece, a sustainable debt management for Greece, and this in the end of course will mean not only the funding of a programme, but it will also mean the lightening of the burden on the Greek people.

French President Nicolas Sarkozy

What we are doing for Greece, in term of sustainability, we will not do it for any other country from the eurozone. I am asking you to realise the importance of this decision. Because in this sustainability problem, we are dealing with the risk of contagion.

German Chancellor Angela Merkel

For Germany, the euro and the European Union are the foundation of our prosperity and of our peace that we enjoy. What we are doing now is to stabilise Europe and we will receive the benefits in many ways in the future. We are investing in the well-being and prosperity of our country and of the people in our country.

British Chancellor George Osborne

(The) package from eurozone countries to support Greece is an important and positive development. Even more positive is the demonstration that eurozone political leaders can take decisive economic action.

Irish Taoiseach (prime minister) Enda Kenny

Tonight Ireland's burden has been eased. We have a long way to go, we still have a massive budget deficit to bridge. But for now this was a good day for Ireland.

Win Thin, global head of emerging markets strategy at Brown Brothers Harriman, New York

This is really just kicking the can down the road. These countries need a serious, hard restructuring. I do not think this is going away, and debt swaps rarely work.

Marie Diron, senior economic adviser to Ernst & Young

If successful, the programme will bring a significant reduction of Greece's debt stock, although, on its own, it is unlikely to be enough to bring Greek debt back to a sustainable level.

Gilles Moec, Deutsche Bank economist

It was virtually impossible to avoid a default and the ECB [European Central Bank] admitted that. [ECB president Jean-Claude] Trichet is a real statesman. He showed it in this crisis. If he has to make a U-turn he will do it for the good of the monetary union.

Frank Schaeffler, finance expert in liberal German Free Democrats Party (FDP)

Without the possibility of leaving the euro the debt reduction brings nothing - Greece will remain on a drip-feed from creditor countries for a long time.

The [agreed] model also contradicts the Bundestag [German lower house] resolution of February on the euro, which made a commitment not to finance any debt buy-backs. I can't agree with this.

Jean Quatremer, blogger in French centre-left daily Liberation

It's a real success, the eurozone has taken another step towards eurobonds and economic and financial federalism. More steps should follow later this year, and why not towards creating a European finance ministry?

Will the solutions found in Brussels be enough to calm the markets? Their initial reaction was very positive, but one must be cautious, as their immediate reaction has always been positive in the past.

Jose Garcia Solanes, Spanish economic analyst

European leaders have been asleep in the face of grave problems affecting the whole Union. They only consider solutions that don't hurt their national citizens. The politicians will go on prevaricating until they understand that the debt crises are a systemic problem for the entire eurozone - a problem requiring institutional, lasting responses on a Europe-wide scale.

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