Fears that Greece’s financial problems could spill over into an international context upsetting the markets proved unfounded as European compromise provided Greece with short-term breathing space. But the Greek saga proved that Germany has the strength and power to drive European policy impacting all other EU members.

<i>The compromise on the Greek economic situation solved nothing. It was just a way of buying time before the next official rounds of negotiations start later in March and reach their climax in the summer. Financial markets have reacted very calmly, as if the Greek saga were not such a big problem. Yet, the general context has changed. The Greeks have lost face and...

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Professor Enrico Colombatto
Brussels seemed unable to develop a long-term vision and acknowledge that the Greek government is insolvent and reconsider the role of the EU institutions - including the European Central Bank - in times of crisis
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