Europe: Who is going to foot the bill?

Efforts to resolve Europe’s debt crisis are, at their core, an exceptionally high-stakes game of chicken, pitting the continent’s central bank against its national governments. Hanging in the balance: the entire world economy.

If an economic calamity is to be avoided, some Europe-wide entity probably will need to funnel money to Greece and other troubled nations and jointly guarantee the debts of the continent’s governments in a we’re-all-in-this-together show of solidarity. The great debate in Europe right now is over what entity will be stuck holding the bag.

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