In the after hours, an historic vote in the parliament of Greece cleared the way for the debt ridden nation to receive another bailout.
By surviving a vote of confidence, Greek Prime Minister George Papandreou has demonstrated to the EU that his majority party can get new austerity measures passed, despite growing public opposition.
That’s important because those austerity measures are a pivotal condition, that Greece must meet to receive the next batch of funds.
Although the outcome was considered extremely likely, now that Greece has cleared this hurdle the chances of a ‘Lehman-like’ financial meltdown are far less likely.
On Tuesday’s Fast Money Melissa and the gang provided in depth coverage of events as they were unfolding and how to position.
Following you’ll find the impact on…. Europe's future. Or click below for the impact on another area:
We’ve broken it down as follows:
- Impact on Markets- Impact on Currency- Impact on Banks- Impact on Commodities- Impact on Europe’s future- Derivative Trades
Impact on Europe’s future
Sean Egan of Egan-Jones thinks developments have simply delayed the inevitable. “It doesn’t change anything about the underlying fundamentals,” he says. “Debt to GDP is still way too high and the economy is shrinking”
And he’s not just talking Greece. He fully expects the financial woes of Ireland, Portugal as well as Spain and Italy to emerge as very serious issues over the summer. “It’s a front burner issue,” he says. “And not just the sovereign side – it’s the corporations too.”
”They dodged a bullet but there’s a machine gun coming,” he says.
Joe Terranova agrees. "I think we've bought some time but I can't tell you 3 months from now Greece isn't back in the headlines."