The Price of Union

October 27, 2011 by

Europe is close to sealing the deal on a unified approach to the looming financial crises - but even at this late hour there are still tensions that threaten to boil over. Many are surprised to observe the European Union’s inability to execute a bailout of Greece. It is even more surprising to think through the consequences of a failure to find a solution.

EU debt deal postpones crisis

October 27, 2011 by

European Union leaders have agreed to write off 50% of Greece’s debt, while bolstering the EU bailout fund to 1 trillion euros ($1.32 trillion). Greece’s debt will be reduced to 120 billion euros by 2020, while French and German banks, which are exposed most to Athens’ sovereign debt, will absorb the largest write-downs.