Europe faces more problems from the financial crisis

More ripples from last year's financial crisis are sweeping over many European countries. Greece, in particular, recently borrowed enormous sums of money to keep the country afloat, and now there are fears that it won't be able to repay that debt. If Greece defaults, that means big trouble for the euro.
This will be an interesting test for the European Union, which has never dealt with such a problem. One option is to let Greece bankrupt itself. Another option is to step in, buy the government's bonds, and avert financial disaster for the EU. The second option sounds much more pleasant, but by stepping in, the EU would be perceived as letting Greece off too easy, and other countries will feel less pressured to narrow their deficits. Rather than taking a stance, we will more likely see a roundabout interaction, with France and Germany coming to the rescue, rather than the EU itself.
Greece has already promised to drastically cut its deficit. But of course, Greece isn't the only one in trouble. Fears are arising for Portugal and Spain as well. And look at our own country! Our deficit is enormous, although fortunately most of the world still views us as the safest place to store money. For that reason the dollar is growing strong, as the euro weakens. Perfect for a European spring break.

Read more: "France, Germany Weigh Rescue Plan for Greece" Article