Greek crisis leaves EU at crossroads

The first rule when you are in a hole is to stop digging. Protestors in Greece are opposing government plans to cut spending to reduce the budget deficit — but it has to be done.

Greece must quickly sort out its finances before the growing crisis engulfs Europe and the international financial community. Investors are still dealing with the fallout from the international financial crisis and have been on the lookout for a sovereign debt default by a country that cannot pay its debts. If Greece defaults, every country that has run up huge bills while trying to spend its way out of recession will find it more difficult to get money.

The Greek crisis also shows that the monetary and economic policies of the European Union do not suit all its members. The EU may soon find that it needs to adapt its economic and political policies, or face a painful split.