Knowledge Centre Archive
Has Europe Finally Rescued Itself? Probably Not.
Although critical details are still being worked out, the European Union’s (EU) recently announced rescue package for Greece is the broadest, most strategic attempt yet to deal with Europe’s sovereign debt crisis. The plan aims to lower Greece’s government debt-to-gross-domestic-product ratio over the next decade while containing potential short-term damage to the financial system, increasing the size of the European Financial Stability Fund (EFSF), and garnering support from private-sector investors and foreign governments.
Under the most optimistic outcome, the plan buys Greece, troubled European governments, and the European and global financial system some more time, kicking the can further down the road to be fully dealt with at a later date.
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