European markets went up for the 3rd Greek bailout, eurozone loses its luster

A Brussels all-nighter of 19 eurozone leaders that will save Greece from an economic catastrophe lasted for almost 17 hours. The leaders have finally agreed to the 3rd Greek bail out to last within the next 3 years worth €86 billion.

The leaders agreed to a set of guidelines that if fulfilled on time, will hopefully augment Greece's economy. Four of which that has to be implemented by the 15^th of this month: raising VAT and broadening the tax base, Greek pension reforms, making the country's statistics office independent, and automatic spending cuts in case Greece misses primary surplus targets.

Greece has to agree to two more stipulation by the 22^nd which are reforms to implement EU rules on handling bank failures and overhaul its justice system. Aside from these 6-point conditions, prime minister Alexis Tsipras, his government and people of Greece has to attain satisfactory outcomes from economic agenda such as privatization of electric transmissions, actions toward non-performing loans and review of labor regulation among others.

The market shares the initial relief evident in the euro's performance. As soon as the news on deals between European leaders to aid Greece broke out, the European market joins the celebration as Germany DAX went up by 1.3%, France CAC added 1.3% and UK FTSE is up by 0.7%.

However, yields on Portuguese and Spanish bonds fell as well as yields on Greek 10-year bonds while German bonds rose. Other than bonds, most prices in the European market went up. While the European stock market rejoice in relief of the new Greek bail out, some of the neighboring countries have lost interest in the euro.

Poland, Czech Republic and Hungary are just some of the European countries that aspire to join the Eurozone. However, recent shocking developments from Greek banks and Grexit scare gave a less than desirable face to the euro. Those events made it look like joining the eurozone is a big risk and could even be a threat to sovereignty. A statement by one of Poland's officials Beata Szydlo deliberately expresses her view on joining the eurozone as she says that they "reject this bad idea unless you want Poland to become the second Greece"

Further Greek turmoil will hopefully be eluded through the 3rd bail-out plan by the eurozone leaders. In the meantime, European markets share the sigh of relief while other European counties thumbs down at the thought of joining the eurozone.