EU Approves Second Bailout for Greece

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FRANKFORT, Germany -- The European Union has approved a second bailout for debt-stricken Greece. But the financial fiasco is far from over, and it still has big implications that could be felt around the globe.

In fact, Greece may have to say goodbye to the Euro just to fix its deep economic problems.

While EU leaders congratulated each other for their so-called "miracle" plan to save Greece, the biggest skeptics are probably on the streets of Athens. What has happened to Greece is called a "recession" -- but it looks more like a depression.

The Greek economy will shrink at least 5 percent this year. Industrial production, which fell 20 percent last year, is still dropping like a rock. Real unemployment is 20 percent, but for young people just out of college, it's 42 percent. And the previous International Monetary Fund bailout of Greece has proven to be just money down the drain.

"It is like receiving a jolt of electroshock therapy. The country is revived briefly through help from the IMF, but the truth is that Greece is already dead," said one Greek named Nikos.

Greece's debt is so high that even if politicians do defy protestors and make all their promised cuts in spending, the government will still owe three times the entire national income. For the wealthiest EU nations like Germany, which has had to give Greece money, it looks increasingly hopeless.

The Germans look at the mess in Greece and know they don't want to pay the bill for it any longer. And there is increasing talk here that it may be time for Greece to leave the Euro Zone.

"I think this would be the best for the Greek people," said Klaus-Peter Willsch.

Willsch sits on the budget committee in Germany's Bundestag, or parliament, and says the "one size fits all nature" of a strong Euro is preventing Greece from recovering.

"If they would have their own currency, they could devaluate," he explained.

Another plan, Willsch says, would be the creation of two Euro Zones, one for rich members like France and Germany, and one for the poor members of the EU, like Greece, Spain and Portugal.

"So you have to talk, and this is my opinion again, about constructing a currency region that really works," he said.

And it's not at all certain the latest Greek bailout will work. The Euro currency head has warned that it could backfire spectacularly, with lenders raising the cost of borrowing for the other struggling EU nations and sending the European Union into an even deeper crisis.

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A CBN News veteran, Dale Hurd has reported extensively from Western Europe, as well as China, Russia, and Central and South America.  Since 9/11, Dale has reported in depth on various aspects of the global war on terror in the United States and Europe.  Follow Dale on Twitter @HurdontheWeb and "like" him at Facebook.com/DaleHurdNews.