13th July 2015
Following a prolonged session of overnight negotiations eurozone bosses have finally come to a unanimous agreement over a third bailout package for Greece.
European Union chairman Donald Tusk said that leaders have agreed “in principle” on the bailout, adding that this “means continued support for Greece”, according to BBC News.
European Commission head Jean-Claude Juncker, confirmed that there will be no so-called ‘Grexit’ from the eurozone currency bloc.
The UK market reacted positively to the news with the FTSE 100 climbing almost 1%, or 47.14 points to 6,720.52 by 09:28 on Monday morning.
Head of the eurozone group of finance ministers Jeroen Dijsselbloem, said the fresh agreement consisted of a €50bn (£36bn) Greece-based asset fund. Some €25bn of this would be used to recapitalise Greek banks.
Greece now has until this Wednesday to pass the reforms put forward by its creditors. Parliaments across a number of eurozone states would have to agree to any new bailout terms.
Prime Minister Alexis Tsipras asserted that Greece had fought a “tough battle”, won debt restructuring, and sent a message of dignity to all of Europe added the BBC report.
He said: “The deal is difficult but we averted the pursuit to move state assets abroad. We averted the plan for a financial strangulation and for the collapse of the banking system.”
German Chancellor Angela Merkel added: “The road will be long, and judging by the negotiations tonight, difficult.”