Why The Greece Deal In Absolute Terms Is A 'Total Mess'

The Greek crisis seemed to have been resolved, even though temporarily, with both the country and its creditors reaching an agreement earlier on Monday.

Mohamed El-Erian, Allianz chief economic adviser, was on CNBC to weigh in on the deal.

Markets Should Brace Themselves For A Messy Implementation Process

"This is a really messy situation and I want to take it to the practical side," El-Erian said. "There is this sort of who got the better deal, who did better, who did worse, but the practical aspects are the following: In relative terms it's a good thing, in absolute terms it's a total mess. And I'm not just talking about the economic and financial difficulties of implementing this, but the demand that this is going to pose on the institutional bodies are huge."

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He continued, "And in addition to politics, this is the return of gunboat diplomacy. So, it's not easy to sell politically and the social aspects are really complicated. So I think we should welcome and be relieved in relative terms, but market should be prepared for an uncertain and messy implementation process."

Two Negative Reasons Led To The Deal

On how both the parties came to an agreement overnight, El-Erian said, "So I see this as very simply they came to agreement for two negative reasons, not positive. Not because they believe that this agreement will work, but for two negative reasons.

"One is the alternative is much more uncertain and therefore much scarier for them; and secondly, no one wants to go down in the history books as having made the decision for the exit of Greece."