Story. Welcome to inside story im ray suarez. Its not over, not by a long shot. Greece appears to be entering into a new bailout from its European Partners this features many of the solutions greek voters resoundingly rented before. The outlines of the deal promised more economic pain loss of international sovereigty as International Bodies oversee greeces International Management and may require a sell off, a privatisation of national assets, and for the near term the greek people have little to celebrate, with the price of staying in the eurozone being an extension of their counter troubleses. Reporter this 73yearold and his wife lost their daughter to cancer three years ago, and their soninlaw two years after. They have been raising their rambunctious grandsons ever since. A tough job for any grandparents. Next to impossible on a pension and benefits adding up to 824 a month. The money is not enough. If we didnt have support were neighbours and nonprofits, wed be finished. Lacking the funds to cover basic necessities, they have not paid the utility in six months a hands to mouth existence. Translation they raise their childrens children and families are destroyed. People are destroyed. In the last five months of negotiations its over for us. The banks are closed. We are in a catastrophe. The day to day jockeying of this crisis commands most of the headlines. Behind the bailout figures, and acrimonious exchanges, another crisis is deepening. A silent crisis engulfing greek families threatening to tear apart the fabric of this society. Kostas is the founder of smile of the child. A nonprofit that runs 14 care homes for 365 neglected and abused children, and centers offering food, medical services and counselling to families in need. Conceived by his sun who designed this logo before succumbing to a brain tumor at the age of 10. Smile for the child helped many families last year. The families are detrooer rating. Theres a lot of violence within the family,kmistic violence and divers. Theres a domino situation. One that is threatening a vital life line. Smile of the child is funded by donations of greek. Generaty that is untenable in the wake of rationing. Families this supported us still to support us. We have a week of survival. But he is prepared to do what is takes to keep the east net intact. Well fight for the children going away going to the state. Doing everything we can. Showing a need to survive. Anunwavering commitment to family. As long as we stand up. Well go out and o do what it takes to raise them. Joining me from athens is there any relief in site for pensioners like the people in your story . Not with this deal. If anything, these people are staring down the barrel of more pension cuts and austerity, you have to question where will it leave them. This is a couple that has not been able to pay the utility bill for six months because they are having to choose between food and necessity. Then you have smile of the child, helping families in crisis children in crisis, relying on donations. Now, the ben factors have not been able to give them money. Banks are closed cash withdrawals are limited to 60 euros a day. They have less than a week of operating funds. Theres no karnt that when the banks guarantee that when the banks reopen that their ben factors will help them again. They are in crisis. In the last election greek Prime Minister chose Alexis Tsipras and his party as a repute yags to the other parties in politics. How do they feel about him now . Oddly enough we have spoken to a lot of people today, getting their opinion on the deal. And overwhelmingly theres a lot of sympathy for Alexis Tsipras, even among those that didnt vote for them. To many he had a gun to their head. To not accept a deal would have meant three banks would have gone under, and not only that, greek depositors could have faced the prospects of having deposits seized. Thats something no Prime Minister will lead the country towards. So a sympathy for Alexis Tsipras. Does that mean that greeks feel partially responsible for the predicament they are in. This is a grown up country and a printout country, and every greek that we speak to talking from all ports of life. They accept possibility from where greece is now. They aspect that its the sport of government that is it bringing people to a stand still. Many pensioners are shoc a country that portrayed them was greece. Are people looking at years, many more years of this circumstance, and can they bare it. Thats an excellent question. There is crisis fatigue here when you try to solve and ask people about measures a lot cant face talking about the crisis. They have been living it for five years of five years of austerity. For 5 and a half to six months they have watched that deceleration. The economy has been in a death spiral. Theres only so much people can take. Well continue our look at the greek bailout, and whether its the right medicine for what is ailing the economically strapped country. Baling out greece its inside story. You have to taste chocolate all day long. How one mans passion. You take a piece of chocolate and you break it and you listen. Led to a lifelong obsession. I owe my life to chocolate. And a dark warning. The world will run out of chocolate by 2020. I lived that character. We will be able to see change. Youre watching inside story. Im ray suarez. Marathon negotiations led to a new deal that would keep greece in the euro and maybe save the greek people from the gracer of their economy. The new bailout faces serious howard murdles, must be voted on by the Greek Parliament and partners who may be putting themselves on the hook for more bailout money, does the deal solve anything or does it delay the time when greece becomes solvent. Does it create the hope for a stable economy that will pay down the mountain of i. O. U. S. Joining me now, a senior fellow at the Peterson Institute, and scott from george mason university. Let me start with you. Is this the medicine that the crossexamine economy and people needed for the near term . Well in the short run we toj dodged a bullet here. Without an agreement, greece would have had to leave the euro creating a crisis in greece. The most accuse status of the crisis had been dealt with. Underlying problems are there for the next year or two it will be longer. We havent really solved the underlying problems. Are we looking at a situation where, as now, greece will owe more money as it continues to make debt statements . I think, unfortunately in the short term one of the things that happened is the economy got worse, they have a bigger fiscal hole to dick out of. Theres strict austerity in the agreement. Theyll have to make severe cuts tax increases. Even so therell have to be further discussion of debt relief down the road. Its so large, it cant be dealt with realistically without debt reduction. They have raised taxes. Unemployment soared. Businesses closed. How does a countriway shrinking economy pay off expanding debt . With growth. The secret is growth and the secret is plate kag stability. The secret is that greece have a stable Government Coalition to run the county for two years and provide a future for the country. If Business Activity is flowing, and money is not moving through the economy, how does political stability gets growth. The package puts in place all the reforms the government did not put in place in change for dealing up the problem. Thats the final si of the programme. If its successful towards the end of the year thatll be the reductions. Theyll recapitalize. You can generate if there is the stability, and the government has ownership of the process, which is what is happening. Scott sumner are greeks likely to give the current Prime Minister and his party time to do what they just described if he did the exact opposite if it came to power, promising to do what it would do. I think its possible. We have been through the two major parties. This is a more radical party. The greek voters are realising that stability is needed here. It will take time to carry this out. In the long term theres growth and some of the reforms are important. If you look at countries that have got back on track. Its been done through Labour Market reforms. Theres no quick solution, therell be a couple of difficult years. If they stick with the reform plan t will pay off in terms of growth. What could go wrong. What renans in the 6 months, 12 months 18 months. That could unravel it. A couple of things. When the banks open theres no credibility. This is something the government should have fought against calling the bluff. When you shut down the banks. Political stability is not there. Theres a lot of people in government. They are very unhappy with the process. They could try to take revenge. That is definitely a risk. Should we worry about the cohesiveness of the european union. Theres a lot of broken china on the floor. A lot of greeks though they paid to ta in europe are a little bitter at the way theyve been treated. The biggest risk i see, if things dont improve, is this crisis could lead to an exit from the euro. Greece is a small county leading to a loss of confidence for the southern european economies. We have to hope that this groiment groiment, they should bury the patience and wait out the reform plan. What about in the rest of europe. If you read the morning paper in dublin lisbon rome. You think they were tough with us we have to do everything they told us. Now the greeks seem to be getting a better deal, by being obstinate. Its like shooting yourself in the foot and taking pills to calm the pain. I think the message that they have got there holes and issues that are being followed. The rest of the countries have taken the bitter pills, done a lot of reforms. A lot is to do with the quantitative programme. Quantitative easing like our own Federal Reserve in the united states. Exactly. Did it work. It is working. They generate a fair amount of growth, is responsible for the recovering growth. And i think it will help greece. If greece success apply implements the programme theyll be eligible for the quantitative easing programme. A senior fellow at the Peterson Institute for international economics. And scott sumner from george mason university. Thank you for joining us on inside story. What is next for the 11 Million People of frooes. You have seen pictures of bank lines, shuttered shops. How much pain will they be asked to endure for not much gain. Bailing out greece its tonights inside story. Theres an old adage, if someone owes you 100 and they cant pay, they have a problem. If someone owes you a Million Dollars and cant pay, you have a problem. Use bigger figure for greece. Representatives of agencies and governments working out a greek pay out represent elective governments and the officials represent depositors, banks shareholders populations that suffered pain to pay their debts and are in no mood to take it easy on grease. Greece. Niklas is from the n. Y. U. Business group and advises the Greek National bank. Welcome to the programme. What do you think of the deal hammered out over the weekend. Is this what greece needs . It wasnt the best possible deal, but the present government wasted nine months and negotiated a deal of 17 hours. You dont expect is to be the best. Still, the alternative was getting out of the euro having its own week currency. People losing deposits and becoming poor. Its much better than what would have happened without a deal. Its not the best. You mention the people getting poorer if they went out of the euro. Havent they been getting poorer staying in the euro. People have lost 25 of their income. If they were right now, to go out of the euro they would, in a few weeks lose 50 of their income as well as 50 of the deposits in the banks. That would be a huge crush. Its not the same as what has happened before. So with the present deal that has been written, maybe we dont know what it will be. If its more or less what it looks. People may lose another 5 of their income during the next year. Its 5 versus 50 . None of them is good but you take the 5 rather than 50 plus. Are you worried once the banks are reopened and limitations come off, that an enormous amount of money will flow out of grease, when it needs it. I think the banks will be open without the capital controls and withdrawal limits being lifted. They could be lifted to some extent. Going in the line and getting 50 euros, maybe they can make it 150 euros, they will not go on the line every day. If we allowed if greece allowed right now unlimited withdrawals, the banks would collapse. No matter how much money the europeans or anyone else put in them. They cannot do that. Gradual trust is lost and it takes a long time to be fixed, to grow again. Theyll have to keep capital controls even after opening the banks. Not so much the people waiting to withdraw 50 or 60 bucks out of an atm, but people with significant amounts of money, are they trying to get their wealth out of the country . They cannot. They cannot get their money out of banks. If they have money at home they can fly out with them. Thats no big deal. However big or small your account is in the bank right now, you cannot get more than 50 or 60 a day. Lets talk about the greek people as we mentioned earlier in the programme, they put up with a lot to get to today. Is it worth it. Was it so worth it to stay on the euro and say alined with the e. U. That the pain will be valuable in the end. People underestimate how much value greece has out of the euro, the loans are 2 . They are very keep loans. Besides the loops, greece has received over 300 billion euros over the last two as gifts from the european union. They may have financed the metro. They gave money to farmers, to produce the goods and so on. And people underestimate that. Its not a sensational headline. It doesnt appear in the news. Theres a lot of money flowing from the european union. Greeks benefitted over the european euro. When i read a man on the street interviews, with shoppers waiting in lines at the atms. You dont here about the athens metro or the funds blowing from brussels. You dont here it. Why . People that control the media and the government doesnt tell them. The bad europe eaches they want to take credit themselves for doing that. They dont tell them the truth that theres a lot of money that flows. Its a human. People have to understand why banks closed. The banks closed because the government negotiated in bad fafth for five months. When the programme ended. The banks closed because people were taking their own money out because they were afraid in what happened right now. Its not baffed europeans, but the greek government and the depositors that took their money out, and there was no money left. Niklas from the stern school of business thank you for joining us. Ill be back in a moment with the final thoughts on when good politics do not necessarily make good economics. Stay with us, its inside story. Greece has an economy that represents about 2 of the g. D. P. Of the european union, by geography, history, political inclipation, its been a bit of an outlier, a little balkan a little Eastern European and a little eastern. It hasnt been a democracy for long when welcomed into the european union, and later into the euro. As expert gets noted. This was as much as political decision. This had no history of currency and integrity, it valued the track ma accepted the fiscal discipline to get into the euro but didnt keep it. We know it now. Its unclear how democracy hold them responsible. Its like knowing someone did you dirty, and if they are not available, pumping someone else in the nose. Alexis tsipras and his syriza party came to power promising not to do what he just agreed to. Its tough medicine sore greece. Get mad. Throw them out of power. Who said the choices made will get any better. Cracks were bound up over the weekend. And the voters annoyed austerityemployed greeks, and eventually theyll have their say. Im ray suarez, thats inside story. Appear negotiators miss a deadline a deal looks imminent on Irans Nuclear programme. Hello, im louis jordon in doha with the Darren Jordon from doha with the world news. Iraqi forces fight to take anbar from i. S. I. L. Im adam raney at a camp in southeastern haiti, where hundreds of people arrive from the seen republic. They are s