At long last, European leaders took a significant step forward on the long road toward resolving the eurozone's debt crisis.
But many details remain unclear and economists are already raising questions about the effectiveness of the
We certainly have moved a step in the right direction," said Guntram Wolff, deputy director of Brussels-based think tank Bruegel. "But this is definitely not the end of the story."
During a live televised interview in Paris Thursday, French President Nicolas Sarkozy said it was a mistake to admit Greece to the euro in 2001.
"Let's be clear; it was a mistake," Sarkozy told French television. "Greece came into the Euro with numbers that were false and its economy was not prepared to assume an integration into the Eurozone. It was a decision that was taken in, I believe, 2001, for which we now are paying the consequence."
The plan, whose development has roiled markets for months, includes a 50% reduction in the face value of Greek government bonds, steps to boost bank capital buffers and schemes to leverage an already stretched rescue fund.
The aim is to safeguard the stability of the euro currency by preventing the debt crisis in Greece from engulfing larger economies, such as Italy.
Investors welcomed the agreement, but analysts said the initial "sugar rush" response could prove short lived.
"This only increases the risks of disappointment, once the reality of the deal sinks in," said Natascha Gewaltig, chief of European economics at Action Economics in London.
in, I believe, 2001 for which we now are paying the consequence."
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