Grexit is off the table

Greece is and will irreversibly remain a member of the euro area. With these words, European Commission President Jean-Claude Juncker welcomed the new bailout programme for Greece on Friday. 

The agreement of the Eurogroup ministers of finance will indeed put paid to all Grexit speculation for some time to come. It seems certain that, after the Greek parliament agreed to the bailout package, the governments and the national parliaments of the other euro area countries will follow suit (the German Bundestag will vote on Wednesday). 

On Thursday, the first tranche has to be transferred to Greece, as an ECB loan worth more than EUR 3 bn will need to be repaid on that day.

"But if membership in the euro area is indeed to be "irreversible", the Eurozone will need to implement for far-reaching reforms, or be willing to enter into further bail-out negotiations", says Commerzbank.