The storm that is the Greek debt problem continues to rage through the global markets. In an emergency meeting May 2, the finance ministers of the European Union agreed to work with the International Monetary Fund to provide 110 billion euro in loans to Greece over three years. The first batch was provided just a day before a heap of Greek bonds reached maturity on May 19.
In return, Greek Prime Minister George Papandreou announced plans to improve his government's fiscal balance by an additional 30 billion euro over the same period through spending cuts and tax increases. But he will face several hurdles in executing these belt-tightening measures, and riots and public-sector strikes have already taken place in protest.
The decision by Germany alone to temporarily ban short-selling in euro-zone government bonds and credit default swaps magnified the uncertainty surrounding the crisis by creating the perception that the European Union was incapable of taking coordinated action.