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WHAT DOES THE EU’S FLESHED-OUT SUPPORT OFFER MEAN FOR GREECE?

PIERRE-OLIVIER BEFFY | EXANE BNP PARIBAS
“Greece will now have to strictly implement its fiscal consolidation plan and Greek economic activity is likely to decline over the next two years. However, the Greek government will be able to finance its debt at relatively low rates compared to current levels. We expect the euro to appreciate.”

BEN MAY | CAPITAL ECONOMICS
“This has reduced the chances of a default in the short term caused by the Greek government being unable to roll over its debt, so people might now be more willing to lend to Greece at short duration, but the long-term outlook is little changed. The debt-to-GDP ratio is still going to rise very sharply.”

GARY JENKINS | EVOLUTION SECURITIES
“While I would expect a positive reaction in the markets today there is still the question of whether the EU is just kicking the Greece problem down the road. There will still be questions in the market as to the real resolve and commitment of the EU if the Greek economy continues to deteriorate.”