The Eurozone Crisis: Italy Next?
First Greece -- then Ireland, Italy, Spain and Portugal: The European common currency has come under pressure from large national debts and the effects of the global financial crisis, ultimately requiring a rescue package close to a trillion euros.
Fears are growing that the euro crisis may soon return. Italy could spark a chain reaction if it doesn't yield to the European Union's demand that it rein in its planned deficit spending. Concern is rising in Brussels and on the financial markets.
The erstwhile bailout fund known as the European Stability Mechanism may soon be granted far-reaching new powers, including the kinds of functions currently possessed by the IMF. But there's a hitch.
Italy can only manage its current crisis with German help. And Germany needs Italy to keep Europe stable. While there is no simple solution, a new form of assistance could help.
Fears are growing that the euro crisis may soon return. Italy could spark a chain reaction if it doesn't yield to the European Union's demand that it rein in its planned deficit spending. Concern is rising in Brussels and on the financial markets.
The erstwhile bailout fund known as the European Stability Mechanism may soon be granted far-reaching new powers, including the kinds of functions currently possessed by the IMF. But there's a hitch.
Italy can only manage its current crisis with German help. And Germany needs Italy to keep Europe stable. While there is no simple solution, a new form of assistance could help.
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