Greece finally strikes a bailout deal

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So the big story is that after months of agonised negotiations, Greece has reached an accord with its creditors

Greek newspapers report that the deal came close to being struck at around 8am Tuesday following talks that began Monday morning

Details aren’t clear yet but the Greek government has to implement measures including changes to tonnage tax for shipping firms, reducing the prices of generic drugs, a review of the social welfare system, strengthening of the Financial Crimes Squad (SDOE), phasing out of early retirement, scrapping tax breaks for islands by the end of 2016, implementation of the product market reforms proposed by the Organization for Economic Cooperation and Development (OECD), deregulating the energy market and proceeding with the privatization program already in place.

Finance Minister Euclid Tsakalotos told reporters that it’s very close to being finalised.

“There are a couple of very small details remaining on prior actions.”

Once it’s finalised, it will go to Greek Parliament to be ratified.

Still, the country is not out of the woods yet.

Bloomberg reports that Greece’s ruling Syriza party will hold an emergency congress in September as Prime Minister Tsipras tries to quell internal opposition. This could split the party and force early snap elections.

And then in October, the European Central Bank will conduct a stress test of the Greek banks.

This could still unravel. The big question is what happens politically in Greece. Will the deal hold? Or will we be back here discussing it again in three years’ time?

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