Der Spiegel Online wrote on February 22:

"As speculators attack the euro, Europe is facing a growing threat of national bankruptcies. The consequences would be dramatic for the whole of the continent, especially German banks, which are highly exposed to risky debt. EU politicians are willing to pay almost any price to help the beleaguered countries...

"Europe is indeed currently the hottest topic on the global financial markets. The value of the battered euro has been falling since the Greek government confessed to the actual scope of its debt -- and since it became clear that things are not looking significantly better in the other PIIGS countries (the acronym refers to Portugal, Ireland, Italy, Greece and Spain).

"There has never been this much uncertainty. No one knows whether the Greeks will manage to solve their problems, whether and how other countries will come to their aid, whether the crisis can be confined to Greece or whether it will spread like wildfire among the PIIGS -- and end up tearing apart the European currency union...

"The financial industry is back to its old tricks, playing with the greatest possible amount of risk. In the past, it speculated with the debts of American homeowners and, as a result, triggered the biggest crisis in the world economy since the Great Depression of the 1920s. Now it is gambling with the debts of entire countries...

"It is no coincidence, however, that the speculators have not zeroed in on the dollar, the British pound or the yen. Although the United States, Britain and Japan are also groaning under the burden of their debt, the euro is much more vulnerable, for both historic and political reasons. The weak southern countries, members of the so-called Club Med, have always been seen as problem cases. They have lived beyond their means and neglected the need to be competitive, they have built up -- partly in full view, partly cleverly hidden -- enormous mountains of debt, and they have avoided hard-hitting reforms. These conditions existed before they became members of the euro zone, and they did not improve afterwards.

"The other euro countries looked the other way. Initially, before the establishment of monetary union, they looked away because they didn't want to jeopardize their political goal of a European common currency. Later, it was because they themselves were benefiting from the euro. The German export economy, in particular, was able to expand continuously...

"The euro has been a success story until now. During the recent financial crisis, the common currency proved to be a blessing at first, particularly for the smaller countries. But as debt levels increased, the problems, previously suppressed, became more and more evident...

"US investment bank Goldman Sachs, in particular, has its finger in several pies at once: as an adviser to the beleaguered governments -- and on the side of the hedge funds that are speculating against the Greeks. Goldman Sachs was also involved when the Greeks tried to hide their debts from Brussels. In 2002, the US bank helped them exchange a portion of their dollar and yen debts, worth $10 billion, into euro debts. Goldman even granted Greece a loan of €1 billion, which was never reported as such to Brussels, and collected €200 million for its efforts... even the new Greek government... cannot manage without the US investment bank...

"The situation would spin completely out of control if, in addition to Greece, countries like Portugal, Italy, Ireland and Spain got into difficulties... German banks are apparently the 'principal creditors in Spain and Ireland, and the second-most important creditor in Italy'... Early last week, the German-French duo brought the remaining finance ministers in the euro group on board. Officially, all are still cloaked in silence and behaving as if bailouts will not be necessary. Nevertheless, the package of measures is beginning to take shape. The German Finance Ministry expects support for Greece to amount to between €20 billion and €25 billion. All the members of the euro group are expected to participate, including those, like Spain and Portugal, who also might find themselves needing help soon... The assistance is to consist partly of loans and partly of loan guarantees... the official version is that the participating countries will not assume any of Greece's debt, which would be forbidden under the treaty. Instead, they will add new debt to the existing debt, something that the rules do not prohibit...

"The Finance Ministry officials are also thinking about creating a new institution... to handle future bailout efforts. This European fund would provide financing to countries in difficulty. It is still unclear how the new rescue fund will be financed. There are two conceivable options: Each member state's contribution could be based on either its share of ECB capital or the level of its deficit. The second solution would be fairer: the worse a country's financial policy, the higher its contribution. In other words, the biggest sinners would be required to pay the highest indulgence.

"Such an institution doesn't exist yet, which means that European politicians will have to make do with what they have. The financial strength of the donor countries could soon be depleted. This could force ECB President Jean-Claude Trichet to buy up the debt of the countries facing bankruptcy -- which is tantamount to printing money. Although this is prohibited under the Maastricht statutes, the EU finance ministers already demonstrated that the treaty could be amended if necessary when, in 2005, they stealthily relaxed the 3 percent criterion for government debt. Such a bailout would come at a high price: It would turn the European monetary union into an inflation union."

The present European crisis, caused by Greece and blamed on U.S. banks, might be another stepping stone to the unification of ten leading and powerful European nations or groups of nations within larger Europe, as prophesied in Scripture. For more information, please read our free booklet, "Europe in Prophecy."