yet another european country joins the call for a bailout. germany continues to fight againtst it, but it seems inevitable if the euro is to continue as a currency. they may have long memories of the weimar republic, but the mediterranean countries are in trouble, and need help.

http://www.telegraph.co.uk/finance/f...

While property losses are modest so far, the Greek banks have run into trouble rolling over short-term debts after the near total closure of Europe's capital markets. The liabilities of the Greek banks are roughly €320bn euros.

As rumours flew in another day of fast-moving drama in Europe, the credit system continued to flash warning signs of extreme stress. Three-month Euribor - the benchmark rate used for floating mortgages and financial contracts -- rose to a post-EMU record of 5.33pc.

Governments across Eastern Europe were forced to issue statements on Thursday assuring depositors that their banks were safe. Traders said Ukraine is on the brink of a currency crisis.

The Greek move puts fresh pressure on Germany to back the mounting calls for an EU lifeboat fund to shore up Europe's struggling banks, even though such a plans are anathema to Berlin. Chancellor Angela Merkel warned that there would be no "blank cheques" for those who get into trouble.

Berlin fears that any such fund is a Trojan Horse that could ultimately leave German taxpayers footing the bill for a massive bail-out of the southern Europe as the region's booms turn to bust. Key ministers are now frantically trying to stop the idea gaining a serious head of steam.