After a 17 hours Marathon, the Euro Summit finally agreed on a "compromise" with respect to the Greek crisis. See attached document. The measures imposed upon Greece and accepted by the Greek Parliament, are far worse than the original austerity plan rejected by a majority in the referendum. Despite a second warning issued by the IMF, the "Diktat" of Brussels failed to provide for debt relief. According to the IMF's update of July 14: "The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date - and what has been proposed by the ESM."
The Diktat of Brussels was very much the outcome of German rigidity in the negotiations. The privatisation fund, probably, is the worst example of it. The fact that Germany could impose its view on the others has a lot to do with the EU's fundamental institutional flaw. Summits are the worst method for deciding on major issues. A compromise after 17 hours, unavoidably, is the one imposed by the stronges party. As a result, "Berlin is wiping out decades of hard-won goodwill" as I read in the Washington Post of July 16 - and for no good reason. The Greek crisis has not been resolved and Greece will be unable to implement the measures imposed upon it.