The Greek government said the country “draws the page” after the euro zone member states reached an agreement on the final elements of the plan to increase the management of its massive debt, completing the eight-year rescue programme.
“I have to say that the Greek Government is pleased with this deal,” Finance Minister Euclid Tsakalotos said on Friday. “But at the same time, this government will not forget what the Greek people have experienced over the last eight years.”
Government spokesman Dimitris Tzanakopoulos welcomed a “historic solution”, meaning that “the Greek people can smile again”. The financial markets have reacted positively, with the main stock index increased by 1.6%.
The plan allows Greece to defer and postpone the repayment of part of its debt for another 10 years and gave Athens another 15 billion euros (13,2 billion pounds) for a new loan. Tzanakopoulos said that this marked “the end of the Greek crisis”. He also added that “Greece is turning the page.”
According to his words the government must make sure that the Greek people will quickly see concrete results. “They must feel the change with their own pockets.”
Prime Minister Alexis Tsipras said at a meeting of deputies: “Greece is becoming a normal country, regaining its political and financial independence”.
For the first time after taking office in January 2015 Tsipras has put a tie – fulfilling a promises made shortly after his election that he will wear only when Greece has settled its debt problems.
But the main opposition party “New Democracy” reacted to the deal with scepticism, saying it remained much to be desired. Asked if he believes that the funds granted to Greece are sufficient, Kostis Hatzidakis from the party said this reflects the lack of confidence that international creditors have had in Athens’s capacity to return successfully to capital markets.
Given that Greece has been subject to enhanced surveillance for the next decade, the reaction on the ground has also been muted, with most people saying they do not think the deal will significantly change their lives. The new deal means that the left-wing government in Athens will have to stick to austerity measures and reforms, including high budget surpluses, for over 40 years. The adherence to them will be monitored quarterly.
On 20 August, the finance ministers of the 19 Eurozone countries must finalise a deal between Greece and its international creditors, which will allow it safely to come out of the third and last rescue and return to the markets again.
Over the last eight years, Greece has received financial support of €275 billion from its international creditors and has twice been in danger of being excluded from the euro area.
