A burden has been lifted off Greece's back, but the country will need to stick to its proposed reform to become a successful economy once again, Charles Dallara, managing director of the Institute of International Finance told CNBC.
“We’ve given Greece a huge breathing space so they now have a burden lifted off and an opportunity to pursue reforms that are needed," Dallara said on the sidelines of the China Development Forum.
The IIF was the central private sector body involved in the successful negotiation of the country’s debt restructuring.
Dallara warned that it was too early to assume that the debt crisis in the euro zone had been resolved and said the growth problem in Europe had not been tackled by Europe’s leaders.
“It is too early to tell. They have an opportunity now with the ECB (European Central Bank) providing liquidity, cutting interest rates. The environment is gradually improving there. There is a lack of a comprehensive recipe for growth and this worries me,” he said.
He added that leaders in the region needed to focus on long-term fiscal discipline, not just the short term.
Many of Europe’s ailing economies including Greece, Ireland, Portugal and Spain are in the midst of deep austerity programs which have been intensely unpopular among citizens in many of these countries with protests turning violent in some cases.Page 1 of 2 | Next Page