Europeans are discussing creating a European monetary fund -- their own version of the IMF -- to handle problems like the Greece debt crisis. Agreeing on this idea would test even those most dedicated to European unity.
What’s next after the debt crisis in Greece? How will Europe handle other potential problem countries that share the euro currency – Portugal, for instance, which on Wednesday saw its debt rating downgraded? What about Spain and Italy, two more overspenders that could endanger the stability of the euro?
These aren’t merely questions of finance and economics, though those are weighty enough. Market uncertainty over the ability of Greece, and now Portugal, to handle their government debt pushed the euro to a 10-month low against the dollar Wednesday.
(For an op-ed by the Greek prime minister on how to shore up international financial regulation, click here.)