Eurozone crisis: "It's an unbalanced agreement"

Eurozone leaders have agreed an emergency loan to Greece worth 130 billion euros. In addition the banks will cancel 53% of the value of loans owed by the Greek state.

The former Belgian Premier Guy Verhofstadt says that the agreement that European leaders reached on Sunday night is not a balanced one: once again efforts are being asked of the Greek people, but structural reforms are not being made.

Mr Verhofstadt who currently leads the liberal group in the European Parliament accepts the need for a rescue package but identifies a whole raft of problems.

"The lion's share of this agreement consists of efforts that the Greek people and Greek businesses will have to make. There is wage restraint, higher taxes, higher VAT, etc, but the system itself is hardly being changed."

The former Belgian Premier says that insufficient headway is being made on the liberalisation of the Greek market. Mr Verhofstadt points to the fact that nothing is being done to the clientalist party political system.

He calls for the revenue raised by privatisations not only to be used to pay the state's debt, but also to attract new private investments.

Mr Verhofstadt favours a major reform of the Greek tax system: "A solid firewall around the Italian and Spanish economies is still lacking. We are still running the risk of a contamination of the other big Eurozone economies."