I was sceptical about the eurozone deal agreed last week from the very beginning. In a talk I gave on Thursday, the day the deal was announced, I said that it would either do no good, or be positively harmful.
Firstly, the debt restructuring announced was clearly insufficient to deal with the problem – Greece would still have been left with an unsustainable debt load. For an orderly debt restructuring to work, it needs to be so bold and radical that it convinces everyone the problem has been dealt with. That clearly wasn’t the case in this instance.