Greece and eurozone avert disaster, but testing times lie ahead

FINALLY, after countless summits, emergency summits and hastily convened meetings culminating in a marathon, all-night negotiation on Sunday, the leaders of the eurozone countries were able to reach a "unanimous" agreement on a third rescue package for the beleaguered Greek economy.

However, the brinkmanship and the acrimony on display during the negotiations shows only too clearly the dysfunctional aspects of the eurozone, its decision-making processes and its institutions.

Ever since the left-leaning Syriza-led coalition government came to power in Greece, the country's negotiations with its creditors have been confrontational, frustrating and riven by deep-seated disagreement. The government, which was elected on an anti-economic austerity platform, was told in no uncertain terms by the creditors (the International Monetary Fund, European Commission and European Central Bank) that it must put up with still more fiscal austerity if it is t…