European leaders met over the weekend and hammered out a deal to create a massive €750 million ($1 trillion) bailout fund to prevent the Greek financial crisis from spreading and potentially causing a collapse in the euro. The plan will create a "financial safety net" both to protect other countries facing bankruptcy and also to shore up investor confidence. Will it work? (Watch a Russia Today report about the euro's rescue package)
It has stopped the bleeding: The euro is 1% up against the dollar this morning, and stock markets are on the rise, says Neil Shah in The Wall Street Journal. "Analysts are happy that European leaders are finally getting ahead of the region’s debt problems." For now, at least, the "bold" plan is working.
"Will EU bailout plan be enough?"
Expect 'lower lows' ahead: The "spectacular success" of this deal should last "maybe a week," says Conrad de Aenile at CBS Moneywatch. After a "brief vacation," speculators will be back to "attack the euro" at artificially inflated prices — and drive it to new lows.
"EU aid package should boost euro and markets but not for long"
There's only one way to save the euro: It's time to "stop defending the indefensible," and kick Greece out of the euro, says Gavin Lumsden at Citywire. It may be a "body blow" to the currency, but it's the only way to protect the EU financial system from speculators and allow it to truly regain investors' confidence.
"Is it too late for Greece to leave the euro?"
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- Why you shouldn't eat dog. Not even once.
- Why Israel can no longer let the Palestinian Authority be responsible for security in the West Bank
- How U.S. special forces are preparing for the worst-case scenario in North Korea
- Why you should really take a nap this afternoon, according to science
- Here's the schedule very successful people follow every day
- Why charity can't solve society's deepest problems
- What would a U.S.-Russia war look like?
- How social conservatives became a minority in need of protection
- Grammar quiz: Do you know the passive voice?
- I hate Ayn Rand — but here's why my fellow conservatives love her
Subscribe to the Week