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Weaknesses In Europe's Austerity Armor?

|Includes:EUO, FXE, Global X MSCI Greece ETF (GREK)

According to Reuters, a senior eurozone official has said that the terms for the second bailout of Greece will be renegotiated "because circumstances have changed."

If this is true, it should be comforting to Greece as it could break the self-perpetuating cycle of misery austerity has created for the country. However, I would like to point out a bit of irony: SYRIZA, the party that lost and everyone was afraid would formulate policies that would lead to a Greek withdrawal from the Eurozone, focused its campaign on calling for a renegotiation of the bailout terms. Although their renegotiations would have probably been more extreme than that of New Democracy, which currently leads the conservative Greek coalition, EU officials have staunchly affirmed in the past that they will not tolerate a renegotiation.

It seems as if the Eurozone leaders have finally swallowed some of their pride and started to accept a wider array of alternatives to save Greece. Lets hope they deliver.

In other news, after New Democracy's victory, deposits have started to trickle back into Greek banks. With SYRIZA defeated, more and more Greeks are now confident that Greece won't leave the Eurozone.

Stocks: GREK, EUO, FXE