No Grexit as agreement reached over Greece debt crisis

Greece will stay in the EU after a bailout agreement was reached following talks that ran through the night.

Greece is to be offered a new bailout deal following extensive talks between Eurozone leaders and Greek ministers.

Discussions went on through the night in Brussels as both parties looked to resolve the deepening financial crisis in Greece, before a revised deal was announced this morning (13 July).

The European Union said in a statement Greece could receive up to €86 billion (£61 billion) in financial aid over the next three years, but the country will need to implement a wide range of reforms by Wednesday if the deal is to go ahead. These include changes to pensions and the labour market, and measures for increasing tax revenue. Sunday trading laws will also be relaxed, and there will be deregulation to a wide range of industries, including milk production and baking.

Last week, the Greek referendum led to voters in Greece rejecting austerity measures. The vote led to volatility in financial markets around the world and the aftermath saw the resignation of finance minister Yanis Varoufakis.

Greek prime minister Alexis Tsipras said he hopes the agreement has put the possibility of Greece exiting the EU "in the past".

"The deal is difficult but we averted the pursuit to move state assets abroad," he stated, adding: "We averted the plan for a financial strangulation and for the collapse of the banking system."

News of the deal was welcomed on stock markets across Europe this morning, with the UK's FTSE 100, France's CAC 40 and Germany's DAX all climbing upon opening on the back of the announcement.

Pic: Matthew Tsimitak