Euclid Tsakalotos spoke of the negative climate at the Eurogroup before a deal could be reached. He pointed to the “neoliberal” nature of the agreement, but he also said there were some positive points, such as a solidarity fund. The government was unable to get the burden shifted to wealthier businesses with more than 500,000 euros as they “believe that the wealthy need more money as an incentive to work harder whereas the poorer classes work harder when they have less money.”

Debt restructuring will come after the first evaluation of the third bailout with a promise for debt after 2022. He pointed to the long-term benefits of the deal as well as other benefits such as the simplification of the tax system. “It was the best we could do,” he shrugged.

Pointing to VAT hikes and the abolition of tax exemptions for islands, he said that the government would begin with Santorini and Mykonos. Other islands, such as Kos and Mytilini will receive tax hikes from 2016.

VAT would be increased on language institutes and computer studies – but this does not include private schools.

The good news, according to Tsakalotos, is that if revenue is increased then there may be a decrease in rates and an increase in other measures.

“It is a difficult agreement and an agreement that only time will tell if it is economically viable. There are recessionary and non-recessionary policies. If people accept it with optimism as a way to prevent a Grexit it might work,” he said, underlining that it is too soon to judge the deal.