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Page last updated at 07:52 GMT, Friday, 22 July 2011 08:52 UK

Greek debt deal 'not the last word'


Eurozone leaders have agreed to ease Greece's debt burden and make the private sector pay for some of the cost.

In her analysis, economics editor Stephanie Flanders said that the deal had put Greek debt back into the "just plausible category" and that market support might "ebb away" in the coming days.

The deal "isn't the last word", former deputy governor of the Bank of England Sir John Gieve told Evan Davis.

"There is a doubt whether the arithmetic adds up," he said, and a doubt over whether Greece "can deliver their side of the bargain."

"I do think this is a good package. It's done a lot of the things that needed to be done, it's hugely reduced the interest cost, it's extended the duration, it's required some - although quite a modest - contribution from the private sector, and it's included other measures - the so-called Marshall Plan for Greece -- which could amount to the sort of fiscal help it needs to re-start growth."

"So I'm not saying this a bad package, but I think we'll come back in the autumn, in the light of the economic scenario, to the question of - is this enough for Greece?"

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