E.U. Considering a Plan to Help Greece

Over the past few weeks a number of different concerns have been risen about the possibility that Greece, Ireland, Portugal and Spain could face a number of problems because of their high debt obligations. The fear has become so widespread; that it has caused the euro to have its largest decline in the last several years, against the U.S. dollar. This have proved to be problematic; as further declines only made the situation even worse and increased the chances that this would spread to other areas. In an effort to restore calm to the markets, the various E.U. finance ministers have said that they will provide those countries that are facing such situations with loan guarantees. According to the plan, put forth by Germany, the stronger E.U. member countries would serve as a backstop for any kind of potential debt crisis in these different countries. While nothing has been finalized, this only underscores the seriousness of the problem.

The big gamble going forward is: that the E.U. could essentially be kicking the can down the road so to speak; where those countries that have engaged in fiscal irresponsibility could be getting off easy. In some of the different member countries this might not be very popular, as the citizens feel that they should not be responsible for the activities of other countries. However, with a crisis that continues to become larger by the day something has to be done to mitigate any kind of effects.  Only time will tell, if the plan being put forth will prevent the crisis or it will only make the situation worse down the road.