Tuesday, February 3, 2009

Can Countries Really Go Bankrupt?

By SPIEGEL Staff

The bailout packages aimed at shoring up financial markets in Europe are getting increasingly expensive. A creeping depreciation of currency is inevitable and state bankruptcies can no longer be ruled out. Could the euro zone also fall victim to the global financial crisis?

"There's a rumor going around that states cannot go bankrupt," German Chancellor Angela Merkel said recently at a private bank event in Frankfurt. "This rumor is not true."

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http://www.spiegel.de/international/world/0,1518,604523,00.html

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