EU: A Bailout Proposal for Europe's Emerging Markets

Austria led the charge Feb. 10 in efforts to get the European Union to offer a bailout package to Europe's emerging markets to prevent a total economic collapse. Austria's proposal is motivated by a fear that its banks, along with Swedish, Italian and Greek banks, that are exposed to the emerging markets in Central and Eastern Europe will be hit hard if the region fails economically. The bailout plan is likely to fail, as it will require Germany's approval, and Germany believes that any such bailout will happen on Berlin's dime.