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Saving Greece - Is Europe's Crisis under Control?

Watch video 26:14

As European leaders meet in order to agree on a second bailout package, the Greek patient is in intensive care, fighting for survival. Other countries that have the euro as their currency have also been infected by the virus of debt. Ireland, Portugal, Spain and Italy are all have economies that are plagued by debt. Time is running out for European leaders and financial markets to act.

There are plenty of suggestions on the table - but no one is daring to predict what the effects of any of these measures would be. Some are arguing for wiping the debts immediately. Germany’s central bank, the Bundesbank, however, has warned strongly against taking this step. Germany’s top bankers say that would undermine the foundation of the euro and jeopardize any further successes in terms of stabilization. Crisis managers in Brussels fear that allowing Greece to default would dampen Athens’ motivation to get Greek finances in order and would set a bad example for other troubled euro countries.

What if there is no debt relief? Some say another multi-million euro rescue package would only help Greece in the short term. The fundamental problems affecting the Greek economy would only be masked, not solved. Issuing eurobonds is another controversial option. If the eurozone chooses that route, it may take the pressure off Greece, but there's the danger that other European economies may also flounder. The option of allowing private investors to foot some of the bill is also on the table.

Efforts to combat Greece's spiraling debt have not proved effective enough, so far. What is needed is an all encompassing solution for Greece, for the Euro and for Europe

What do you think: Saving Greece - Is Europe's Crisis under Control?

Write to us at: Quadriga@dw-world.de

Our guests:

Frank Paul Weber - A Frenchman who has worked as a correspondent for the Paris daily “La Tribune” since 1999. He initially reported from Germany, later from Italy. Before taking up duties as a foreign correspondent, Weber was engaged as a social scientist at universities in New York, Paris, Berlin and Warsaw. He lives and works in Berlin.

Cornelius Adebahr studied political science, philosophy, public law and international business in Tübingen, Germany, in Paris and Berlin. From 2006 he worked as a research associate at the German Council on Foreign Relations (DGAP) in Berlin, initially as part of the European Foreign and Security Policy program. Since 2009 he's worked at the Alfred von Oppenheim Center for European Policy Studies. He has published papers dealing with European crisis management and European economic and financial policy reform.

Athanassios Pitsoulis studied macroeconomics at Siegen University in Germany, specializing in economic policy and economic history. In 1999 he became a research associate there. He held a chair in economic science and economic didactics. Today's he's a professor of microeconomics at Cottbus university, in eastern Germany. His published papers deal with institutional competition within Europe and its effect on European and national economies.