Safe, but for how long?

Has the crisis been averted?



“At a summit of EU leaders in Brussels which looks like being overwhelmed by the implications of Greece’s debt and deficit emergency, Chancellor Angela Merkel and President Nicolas Sarkozy, said senior EU sources, should deliver a joint Franco-German signal that they stand ready to come to Athens’ rescue if need be.”

This is perhaps the first major test of the Euro since its adoption in 2002. This very scenario, in which a poor member nation threatens to default on its debts, is one that Euro-skeptics warned of so many years ago. But it seems like the big brothers of the Euro zone, Germany and France, have agreed to step in, as they should. If the Euro is to mean anything then the wealthy nations must be prepared to step in to avoid a larger contagion. At the same time all the members of the Euro zone must play by the rules they agreed to in the first place and curb their deficits going into the future. If this happens again there is doubt that the leaders of the larger Euro nations will be so willing to come to the rescue.

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