Greece “mostly capitulated” in the talks with its euro zone creditors that produced a deal to extend for four months its rescue loans in exchange for fiscal reforms, former Pimco co-CEO Mohamed El-Erian told CNBC on Monday.
Germany, the biggest contributor to Greece’s bailouts, got “much more” than Athens, the chief economic adviser at Germany-based Allianz said in a “Squawk Box” interview.
Greek Prime Minister Alexis Tsipras—whose leftist party recently won election there by taking a hard line on austerity—said Saturday: “Greece achieved an important negotiating success in Europe.” Tsipras also insisted the majority of Greek people support this deal, which would need to be approved by the Greek parliament and the German parliament.
“One parliament is all it takes to reject this. So be careful for on that step,” El-Erian said. “But I think we get through it.”
Greece plans to present its economic reform plans on Monday.
But ultimately, this agreement only buys more time, he said. “The major issue hasn’t been solved. We need a fundamental recast of austerities, structural reforms and debt relief.”
“They are still miles on agreeing on that,” he added.