Wall Street Journal
September 10, 2011
Sixteen months after a landmark bailout and seven weeks after a fresh deal to pull it back from the brink of collapse, Greece remains in danger of descending into a messy, destabilizing default.
In a vertiginous trading session Friday that also saw the surprise resignation of a top European Central Bank official, Greek woes once again unnerved investors. The euro slumped sharply against the dollar, falling under $1.37. Bourses in Paris and Frankfurt suffered big losses, led by banks, who would bear the brunt of a meltdown in Europe's periphery.
Greece is being buffeted on several fronts. It is in danger of missing budget-cutting targets that its euro-zone rescuers insist are the price of continued aid. Participation by banks in a crucial debt-restructuring plan may be less than planned. And euro-zone countries are mired in a debate over whether Greece must provide collateral to secure its bailout money.
There is little room for anything to go wrong. Without more aid, Greece will run out of cash within weeks, senior Greek government officials say.
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