Berenberg's Schmieding thinks there's a 25 percent chance that Greece will leave the euro in the next six months, if its parliament balks at painful austerity measures and euro members are reluctant to provide more help. But he thinks a Greek departure would cause "only temporary damage." Other economists think it could break up the euro.Another hotspot is Spain, the eurozone's fourth-largest economy. The country's debts are piling higher as its regional governments struggle and its economy shrinks. The ECB's offer two months ago to buy unlimited amounts of government bonds is a potential life-saver, but the country's Prime Minister Mariano Rajoy needs to formally request such aid. He has held off, apparently hoping the current market calm will last and he won't suffer the political humiliation of taking a bailout. Analysts say that if he waits too long Spain's borrowing costs could rise again to unsustainable levels and reignite broader fears in financial markets.
After 3 Bumpy Years, Europe Turns Corner On Crisis
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