Thursday, February 9, 2012

Beware of Europeans Bearing Austerity

Update: too early for champaign apparently...

Or so the Greeks have been saying.  But today brings the welcome news that an austerity deal has been worked out:

After days of dramatic talks, Greek political leaders reached a deal on Thursday to support a package of harsh austerity measures demanded by Greece’s financial backers in return for the country’s latest bailout.

The deal is expected to unlock €130 billion, or $172 billion, in new loans and save Greece from a potentially disastrous default.

But, as this nice graphic from The New York Times shows, there is still a lot of Euro mess to be cleaned up. But Greece was the first domino that had to be prevented from falling and it now looks like it will remain standing. Big sigh of relief.

It is not over by a long shot, but this is a big step in the right direction.

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