July 13, 2015
Eurozone leaders said they would give Greece up to €86 billion ($96 billion) in fresh bailout loans as long as the government of Prime Minister Alexis Tsipras manages to implement a round of punishing austerity measures in the coming days.
The rescue deal—hammered out after 22 hours of at times acrimonious negotiations between the currency union’s leaders and finance ministers—requires the Greek left-wing government’s near-total surrender to its creditors’ demands. But it gives the country at least a fighting chance to hold on to the euro as its currency.
“The deal is hard,” Mr. Tsipras said after the summit, warning that the measures required by creditors will send the country’s economy further into recession.
European stocks rallied Monday on the news. The Stoxx Europe 600 rose 1.7% early in the afternoon, building on Friday’s hefty gains.