Euro crisis

EU leaders avert disaster, but relief will not last

EU leaders reached an agreement yesterday that prevented a Greek default and lessened the threat of contagion to peripheral European debt, but a crisis is still looming.
Newspapers in Greece reacted with measured relief on Thursday after EU leaders sealed a deal to write down debts AFP

Asian markets rallied yesterday after EU leaders stayed up late in Brussels on Wednesday to coerce banks into taking a “voluntary” 50% haircut on Greek government debt.

That has reduced the likelihood of Greece incurring a default on its debt, for now, but many details still need to be agreed between politicians, bankers and regulators. This is a crisis that isn’t going away. That, at least, was the general view coming from research desks yesterday.

In addition to the writedown on...

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