It also appears that the ECB will concentrate on reducing its purchases of government (rather than corporate) bonds, but here issuance is increasing, with the net amount
of eurozone government debt set to expand in 2018, in contrast to the contraction seen over the previous 18 months.
The process of this deal wasn't dissimilar to the bailout programmes that have already passed — the
other eurozone governments were a little less sympathetic, partly due to public pressure, and the Greek government was more radical than ever.
We see scope for pressure on Italian and
peripheral eurozone government bonds but don't see this as a sustained negative for the euro or regional equities.
But he also called
on eurozone governments, as he has often done, to do their part to stimulate the economy by taking measures to raise productivity and by making changes to improve the business environment.
The verdicts, the first time the European Commission has issued detailed evaluations of
eurozone government budgets, also include a warning to France that its economic reform plan constitutes only «limited progress» towards reforming its slow - growing economy.
But when the other eighteen
Eurozone governments became Greece's creditors they also assumed a significant stake in the financial affairs of Greece.
Eurozone governments will likely approve on Monday a long - elusive rescue package for Greece, saving it from a potentially calamitous bankruptcy next month, senior officials said.
The second part of the agreement involves a common resolution scheme whereby when any eurozone bank gets into trouble the scheme will decide whether to bail out the bank or let it go bust, with
all eurozone governments jointly bearing the cost of the bailout.
Seventh, it does not affect the ability of
Eurozone governments to run large deficits in any significant way.
First, it is by no means certain that all of
the Eurozone governments will cooperate with the agreement.
Every eurozone government has debt problems and is cutting its spending, Richard Douthwaite says.