Eurozone bailout: a good start, but more to do

The lack of anything in substance from Berlusconi and no detail on how the EFSF is going to be financed apart from the news that it shall be leveraged four or five times which smacks of even more financial manipulation won't help market confidence.

We have still not found a real solution and it seems that this mess is going to carry on for many more months let alone years before either everything really unravels and we face some terrible consequences or confidence is again restored until the next financial emergency knocks us for six.

Major restructuring includung some severe social and economic changes for all of us shall have to happen sooner or later.

We cannot have both high youth unemployment and a growing army of voting unfunded pensioners without something in our present system snapping - that's the fundamental problem we all face.

This homebrew will leave a hangover ... best sipped politely.

As usual the EU leaders have taken far too long to agree to only the minimum required to stave off this crisis. We have been here before.

- Core Tier 1 of 9% is laughable.

- Haircut of 50% is not enough especially as its the Greek Banks who are hit most and then have to be recapped with more sovereign debt.

- Debt to GDP of 120% is unsustainable for Italy so why is it seen as ok for Greece?

- The EFSF is still not big nough.

The markets have bounced today but mark my words the ftse will be back below 5000 pts before Xmas.

Out of all of this, just three words really matter. They were used by Merkel yesterday to sell the deal to the German Parliament: "No more money".

The Greeks must think that Christmas has come early!!

A common Greek business expression and ethos is "Screw him before he screws you". And how they have too.

If there is no punishment for not repaying their loans, then there is no reason or incentive for the Greeks to reform their corrupt and inefficient Government.

Greek businessmen endeavor, and believe that they are morally entitled, to avoid paying their taxes because the Greek politicians just steal their money, as well as the EU loans. Look at all the new villas and yachts, and ask where the money came from.

The Greek Government can pass all manner of tax raising laws, but except for the poor government employees (a massive 30% of working population!!), the businessmen will just ignore/avoid/fiddle the tax demands; just look at the response to the property tax that the Greek Government is trying to raise through the electricity bills.

Greece can only get out of this mess by leaving the euro, and reforming their government. Assuming they still wish to stay in the EU, then they should be assisted by the EU in this essential task, with a view to eventual re-admission to the euro.

So the banks need to be re-capitalised because they lent loads of money to Greece ( and others ) who cannot pay it all back.

Once they are re-capitalised they will lend even more money to Greece ( and others ) who still will not be able to pay it back.

And this is the Grand Solution ???

Well described as just about achieving the minimum to keep the ball in the air. The can has just about been kicked down the road one time more, but we are still a long way from a permanent solution. The positive market reaction is perhaps more a comment on the low level of expectations engendered by the past series of inadequate measures.

Like I've said before even if ALL Greek sovereign debt is written off it does not solve the problem as Greek government expenditure far outweighs government revenues............... and we are going down the same path unless WE also have massive structural reform in which, I believe, instead of us all being entitled to state health services, education and pensions that only the poorest of us would still be entitled to and use.

For example, those who can afford it (including many socialist members of Parliament) have always prefered private education while paying lip service to banning what they themselves want (hypocritical b*st***s!) so we really need to dispose of these state services for those who nolonger need them and concentrate on bringing the poorer segments of society up to a higher standard of living or we'll be living in an island akin to a Greek state before we can say 'Wuz 'appened 'ere?'

@ Rober Court, how many people do you actually think can afford private healthcare and education in this country and still have the means to pay rent, buy food and bring up children? I suggest a very small proportion - the reason why people most cannot afford to pay for these most basic rights is because in relative terms most people are poor compared to to those who could afford to pay.

Mike b, "If there is no punishment for not repaying their loans, then there is no reason or incentive for the Greeks to reform their corrupt and inefficient Government.", they are partly guilty, but the greed from the street fed the inefficiency and sloth. It is the street dwellers who do want a 'haircut' and to continue to live the life of Reilly at the expense of others.

Merkozy just made it possible for the party to continue and the Italians (in the same part of the world) will now also want to jump on the boat, which Merkozy have so willingly pushed out, and with gusto.