Eurozone agreement boosts economy

Plans to address European debt crisis get off to a good start.

By Tess Riley Published 22 July 2011

Early signs of success have spread relief throughout the eurozone following a fortnight of market uncertainty. In Europe, UK and French markets are up by one per cent, while in Japan, the Nikkei closed up 1.2 per cent. The euro continues to rise against the dollar.

The aid package contains a number of measures intended to ease Greece's financial crisis and prevent the spread of uncertainty into other eurozone economies. Greece, Portugal and the Irish Republic have all received extensions on their repayment terms. Greece has also been promised an additional 109 billion euros in loans.

Greek Finance Minister Evangelos Venizelos celebrated the agreement, saying it would provide "great relief for the Greek economy".

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Tags: Evangelos Venizelos Greek debt crisis Eurozone

2 comments

Mon, 2011-07-25 19:34 — Whig (not verified)

@Tom

Agree with you. The banks should be compelled to come clean on their liabilities. Depositors money should be protected to prevent a run on the banks but investors should deal with the losses, this would prevent moral hazard in future.

Alas on this latter point of moral hazard worse is to come.

All this has done is brought some more time. The capacity of the economically illiterate masses to delude themselves regarding these matters never fails to surprise me.