Greek Vote is Not the Last Word on Bailout Package

The Greek parliament’s vote to approve the austerity measures forced on the country if it wants a second bailout package worth $172 billion put some air under equity markets — and the euro — today. But Greece is not out of the woods yet.

On Wednesday, the eurozone’s finance ministers need to sign off on the steps approved by the Greek parliament. On the same day, a report is due from the “troika” – that is, the EU, the IMF and the European Central Bank — on Greece’s ability to meet the terms of the package of austerity measures it just agreed to. Then, the country needs to complete its negotiations with bondholders over the terms of the debt swap deal.

To complicate matters further, Germany won’t vote on whether or not to accept the Greek deal until the troika’s report. Germany also wants written assurances from Greece’s political parties that they will abide by the austerity measures following the April elections.

Add to the mix the several thousand Greeks demonstrating in the streets of Athens, and it is difficult to conclude that the worst is over. Essentially nothing is substantially changed from last Friday except that hope is once more back in the equation.