US-CUBA EMBASSIES REOPEN, UN ENDORSES IRAN NUCLEAR DEAL, BANKS IN GREECE REOPEN: JULY 20, 2015 IS A SIGNIFICANT DAY

July 20 is the big symbolic day for a globalized world.

Three big international events had their formal start today, on this Monday.

The events that were in making for a long time and finally saw the final bottlenecks overcame in recent days, had their functional beginning today.

After 54 years, the United States of America and Cuba opened their embassies in each other’s territories. After decades of mistrust, they upgraded their diplomatic missions in their respective countries to the status of full-fledged functional embassies.

Today, on July 20, the United Nations endorsed the historical nuclear deal between Iran and six major powers of the world (America, Britain, Russia, France, Germany, China). The deal prevents Iran from occupying nuclear weapons for at least 10 next years, thus keeping in check the nuclear race in the Middle-East where oil money of dictators flows freely to keep many monarchies safe and running at any cost.

The UN endorsement paves the way for a sanction-free world for Iran where it can engage in economic activities to work on national finances. Lifting of sanctions will also results in hundreds of billions on dollars in frozen assets now available to the Iranian policymakers. Being a major oil producer, lifting of sanctions will also mean cheaper oil for countries that largely depend on oil imports to meet their demands.

Today, on a July Monday, banks in Greece were reopened again, after three weeks. The European nation reached at a bailout deal after defaulting on June 30 on International Monetary Fund loan. Greece has seen intense protests over the terms on this deal that many says are humiliating. The IMF says Greece needs much more than the deal proposes.

But, ultimately, for the time being, the deal is in. IMF said today the country is ‘no longer in arrears to the IMF’. With borrowed money, Greece started paying loans of the European Central Bank (ECB) and the IMF. With borrowed lease of life to stay in the Eurozone, Greece again started on the process to save its economy from a complete breakdown.

So, Greece is no longer a defaulter country – for the time being. But the deal has come with many austerity measures for the country that are binding and Greece has to meet the terms (as dictated).

These three events have global ramifications for international economy and associated global politics – irrespective of the way they go.

It will take time to assess the impact of the measures taken.

It will be years before the US-Cuba ties can reach to a normal bilateral level.

Iran and the world community have to progress patiently for years to realize the objectives of the nuclear deal.

And no one can say anything about Greece as of now. Every analysis points towards negative indicators on the future outcome of the deal. But, as of now, we can say a start to an effort (yet another effort) has been made.

©/IPR: Santosh Chaubey – https://santoshchaubey.wordpress.com/

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