Greek government will implement austerity grudgingly

Significance

Falling bond yields suggest some return of confidence after the government's legislation of further cuts and reforms, and the successful conclusion of the second review of Greece's third bailout. Greece has depended almost entirely on official concessionary financing since 2010.

Impacts

• A modest economic recovery could take hold now that uncertainty over concluding the review has ended.
• Despite resentment towards the EU post-crisis, only 35% of Greeks in a recent Pew survey would leave the EU, while 58% would remain.
• The prolonged crisis will leave many Greeks disillusioned with all political parties, whether in government or opposition.