Eurozone deal 'dead on arrival' - economists

Leading economists say politicians' agreement on the eurozone debt crisis lacks clarity and is not hard-hitting enough.

The three-pronged deal, decided late last night, includes approval of a mechanism to boost the eurozone's main bailout fund to €1tr (£880bn, a 50% haircut for Greek bondholders, and a requirement for banks to raise more capital. But economists have criticised the accord, saying it does not go far enough, and could potentially contribute to a further slowdown in economic growth. "The deal was effectively DOA (dead on arrival) and is not a solution. The leverage is too low, the insurance scheme is a con and the bank recapitalisation levels are based on what countries can afford, rather ...