With optimism about its third bailout deal, is Greece’s place in the euro now more secure?

Dr Holger Schmieding is chief economist at Berenberg, says Yes

The deal is good. After six months of loony left nonsense, Greece now has a chance to get back on track. The deal cannot undo the damage which Alexis Tsipras has caused so far – capital flight of some €60bn, a relapse from the rebound of mid-2014 into a new recession, and a near-collapse of the Greek banking system. But the deal now sets largely the right priorities. It commits Greece to deliver Thatcher-style supply side reforms such as a deregulation of product and labour markets, serious improvements in governance, an immediate judicial reform, and a clampdown on unaffordable early retirement schemes. If Greece implements just half of these reforms, it will be a more competitive place with a stronger growth potential and less in the thrall of vested interests. Whether Tsipras can deliver on what is mostly the opposite of his campaign promises is the one open question. But if he does, Greece’s place in the euro will be much more secure.

David Buik is a market commentator at Panmure Gordon, says No

In the 53 years I have been following politics and markets, I have never seen a more inept performance as that put up by the EU, Eurozone and IMF in attempting to put Greece’s intolerable financial plight to bed. None of the parties have come out with any credit. The weekend’s machinations were an extension of a gigantic Ponzi scheme – orchestrated by the EU’s most powerful political oligarchs, who are terrified that Spain will follow suit, if Rajoy loses the election in November. Of course, it was temporarily necessary to avoid the Greek government defaulting on its entire €320bn of debt, but the fact remains that Greece is borrowing money from the same lenders it owes money to, with no discernible repayment plans. Greece has 12m people and little industry and commerce to generate the sort of income to service or repay gargantuan debt. The only way Greece can extricate itself from this vortex of despair is Grexit.