European Union Agrees to Bail Out Greece

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Photo: John Macdougal/AFP/Getty Images

European leaders have agreed to provide a multi-billion-dollar bailout to Greece, "if needed." The hope is that by covering its debts, damage to the European currency and the E.U. as a whole will be contained— although as some are pointing out, Greece could just be Europe's Bear Stearns: the first domino of many heavily indebted nations to fall. But, fingers crossed, Italy, Portugal, Ireland, Spain, and the world! Meanwhile, France and Germany, which are the wealthiest countries in the European Union and therefore expected to take on the lion's share of the loan to Greece, are not psyched. As you can see from the picture at right, even the most delicious piece of baklava would not make Angela Merkel smile right now.

EU Leaders Reach Deal to Rescue Greece [NYT]
EU Leaders Agree on Greece Support [WSJ]