After a marathon 10-hour summit held in Brussels on Wednesday, European leaders set out a deal to raise the eurozone's bailout fund to €1tn ($1.41tn) and implement a "voluntary" 50 per cent write-off for private bond-holders of Greek debt.
International markets reacted positively with an upswing, suggesting the deal had a positive impact on investor confidence. But many analysts say the deal solves nothing in the long term and simply buys European leaders a little more time.
Greece is inundated with debt and in its third straight year of recession. Without a "firewall" in place, its economic troubles could cross over to other eurozone economies, like those of Ireland and Portugal.
Can this deal help put an end to the eurozone's growing debt crisis?
Inside Story discusses with guests: Raoul Ruparel, an economic analyst at the London-based think tank Open Europe; Thomas Klau, a senior political analyst from the European Council on Foreign Relations; and Yohen Moebaert, a senior credit analyst for Deutche Bank.