El-Erian Says Germany Got More than Athens

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza