The market turmoil that saw Greek borrowing costs soar as interest rates on benchmark 10-year bonds jumped to 8.71% and the Athens Stock exchange losing 14.2% led to Europeans rallying to Greek support. European Central Bank President Mario Draghi and the European Commission’s Vice President Jyrki Katainen both jumped to say that they will help Greece “in whatever way is necessary.” Bank of Greece Governor Yannis Stournaras told Proto Thema that there needs to be a new agreement because conditions have changed and we cannot continue with an agreement signed in 2010.

The main development as a result of last week’s market upheaval was that both Greeks and Europeans understood that Greece is not ready to exit the bailout program as had originally been hoped. Instead, a new framework will be set giving the Greek government greater flexibility to formulate national policies, but still under the supervision of its international creditors. Specifically, Greece needs to guarantee that reforms will continue and that it will continue to pay its dues to international creditors.

Furthermore, it was decided that Greek support would come through Europe and not the International Monetary Fund, thus formulating a new framework to be agreed upon on at the Eurogroup meeting of December 8.