Euro zone aid package shores up Greece, for now

Simon Tilford, chief economist at the London based Centre for European Reform, says the effect of the package may be limited to merely delaying Greek insolvency. "It doesn't address the fundamental concerns, it doesn't address the causes of the underlying problems within the euro zone, but it certainly addresses the immediate threat of insolvency in Greece," he says. "So, the risk of Greece defaulting - in the short term, at least - has been reduced very considerably as a result of this announcement." Tilford notes that the Greek bailout was agreed by euro zone governments only after two months of relentless pressure by the financial markets.