Tuesday, September 13, 2011

How Will Germany Respond to the Euro Zone Crisis?

This article describes the crisis in Europe and the important roles that its two largest economies play in resolving the crisis. Germany and France have worked together to patch things together but more needs to be done to deal with the issues. The German Chancellor has been put in a tough position. She does not have support among her coalition partners to take more dramatic steps to prevent a Greek default. A default by Greece would stress the large French banks that purchased the lion's share of Greek debt. The French government has been forced to back up its largest banks as a result. The Euro Zone crisis is no longer confined to its periphery.

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