BRUSSELS – The blame game in Europe has not yet begun. An agreement between Greece and its private creditors and public lenders will enable it to meet its next debt repayment deadline of March 20. The Europeans should be commended for a significant step in the direction of realism. Private creditors have accepted a haircut of more than 50% on their claims and a lowering of interest rates, bringing the total debt relief to more than two-thirds.
But, while a solution was found in extremis, many people believe that it will merely postpone the day of reckoning,& as Greece will not implement the promised austerity, and will end up either deciding to exit the eurozone or being pushed out following an eventual default.