European Markets Rally on Greece Justified – For Now

European markets are right to be optimistic over the latest Greek concessions, but there is no guarantee a final deal will be reached, according to Economics Professor Antonio Fatas of the INSEAD Business School in France. On Thursday, Greece submitted a proposal to European creditors that includes spending cuts and tax increases, in the hopes of receiving $59 billion in new aid and avoid an exit from the European Union. 'I think there's lots of positive signals over the last two days, it has come as a surprise,' said Fatas 'I think two days ago everyone assumed the outcome would be a very large crisis. So I think the optimism is justified but at the same time there's still a lot of uncertainty left and we'll have to wait a few more days to get a final answer.' European officials will review the new Greek proposals today, which will also go before the Greek parliament. Fatas said the latest proposal makes a Grexit less likely, but he cautioned that the situation could change over the next three days.