FLEETING RELIEF: Greece’s election result has eased fears of imminent financial disaster for Europe, but the continent’s leaders are still searching for a way to contain a debt crisis that threatens the global economy.
THE BACKGRIOUND: A narrow victory for the New Democracy party in Greece means that the country is more likely to stick to the harsh austerity terms of its €240 billion ($300 billion) bailout and not face a chaotic exit from the euro in the very near future. A quick euro exit could have destabilized Europe and send shockwaves through the world.
MORE PROBLEMS: Europe is struggling to put out several other fires. Heavily indebted Spain and Italy saw their borrowing costs rise Monday, increasing pressure on their government finances and keeping alive fears that another big bailout might be needed.
