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The negotiations on the third bailout package for Greece are still going on, but the euro area has already paid a high price for it. The compromise on which it is based is clearly very controversial. Some of its critics believe that it does not make sense in economic terms, whereas others point out that it may have an adverse political effect. But what in fact is Greece actually supposed to be doing, and what does all this mean with regard to sovereignty and democracy?
The heads of state and government of the euro area struggled for 17 hours to reach an agreement designed to reconcile Greece’s financial needs with the security requirements of the creditor nations. What has emerged is a key issues paper which makes demands on the Greek government that even Federal Chancellor Angela Merkel called “harsh” in her first public statement on the subject. In this Spotlight Europe, Katharina Gnath and Isabell Hoffmann explain the small print of the agreement and the obstacles that may yet have to be overcome before the negotiations are completed. They then turn to the question of whether or not the agreement is consonant with the democratic aspirations of the EU.
Download full Spotlight Europe August paper below