As soon as policymakers averted a crisis in Cyprus, another appears to be brewing. The latest country to provoke concern is Slovenia.
The small former Yugoslav republic took a beating Friday, with long-term bond yields spiking to 5.4 percent amid fears the country would need a bailout. Those aren't crisis-level rates — Cyprus' yields are around 7 percent, for comparison — but it's certainly in the danger zone. How did Slovenia get here, and why?
It's a small, open economy that joined the European Union in 2004 and quickly pegged its currency, the tolar, to the euro. In 2007, it adopted the euro.