Eurozone leaders agreed a three-pronged approach.

Banks will be recapitalized with 100 billion euros. Greece’s debtors will be asked to write-off half of the debts, and the European bailout fund will be ‘leveraged up’ to about a trillion euros to try to cover other indebted countries like Italy or Spain.

Not good enough, says Simon Tilford, chief economist at analyst group the Center for European Reform.

“There is no new money involved," said Tilford. "What they are essentially saying is that we will cover a proportion of your losses if these countries get into funding difficulties. Now the question is whether that will be enough to persuade investors to lend to countries. It is not clear it will be.”

In Greece, which faces years of austerity cutbacks under the bailout, reaction was despondent.

One man said, "I do not believe it was a good deal, but it was inevitable. At this moment, Greece has gone bankrupt."

Another man added, "It is a dark and shady deal. Everything here gets worse by the day. God help us."

Investors’ concern is turning to Italy. Debt in the eurozone’s third-biggest economy is 120 percent of GDP.

In Rome, the deal was greeted with skepticism.

"I think it all stems from the fact that we are not credible anymore,” one commuter said.

“I do not think this government is capable of managing this crisis situation,” said another.