The fiscal crisis in Europe is threatening to become an economic crisis, and that's alarming Washington and governments across the world.
Finance Ministers from the world's G7 countries held an emergency tele-conference on Tuesday to discuss what to do.
At stake is the future of the pan-European currency, the Euro.
Financier George Soros made a speech at the weekend in which he said Europe's leaders have only three months to prevent the collapse of the Euro.
A collapse would create chaos in Europe's financial markets, and threaten the destruction of big banks.
That fear alone is already cramping economic activity as many businesses pull in their horns, anticipating a slow-down.
The key to saving the Euro lies with some grand bargain involving the wealthy and solvent core countries in Europe — like Germany and the Netherlands — in sharing the debt burden of the poorer peripheral nations.
But the Germans are demanding a high price in exchange: greater federal integration of Europe.
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