Yesterday Greece reached a decision that might have prevented a sudden collapse. The agreement also reduced pressure on peripheral countries such as Spain. But saying farewell to imminent defaults does not save anyone from mid-term danger.
So one has to measure out any aid that the markets provided yesterday. The plan nearly passed with 138 unfavorable votes, which is something that fed Merkel and the IMF´s do not trust.
Papandreu felt reassured. He has won some battles, but he has a really hard one ahead. The markets are paying close attention to how he will negotiate with the banks about deferments of public Greek debts.
This process will give an idea of what could happen if a critical situation like this occurs in a country that depends more heavily and systematically on the euro. Greece?s agreement is like an antibiotic.
If the medicine it doesn?t end the treatment, the illness reappears even stronger. A random pill or two will not provide a cure. What?s worse is that the Greek malady is spreading.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
