Tense times in the euro zone

Demonstrators in Spain protest against the financial crisis and the latest government economic measures in Madrid, Sunday, June 10, 2012. (AP Photo/Daniel Ochoa de Olza)

Hour 1

On Sunday, Greek voters will return to the polls to choose between two candidates — one who accepts the terms of European bailout plan and one who doesn’t — and depending on the outcome, Greece could be the first country to exit the European Union.  This past week, in an effort to stay solvent, Spain accepted an EU bailout for its banks, which were struggling after a huge housing bust.  Meanwhile, in France, the new socialist government is pushing back against austerity measures promoted by Germany and instead is looking for more government spending to get the economy moving, a perspective shared by the Obama administration.  Things are tense in the euro zone and there is a lot at stake in the next few weeks. Can the EU survive a Greek exit and will politics in France, Spain and Germany fuel the crisis?  And what’s the potential fallout for the U.S. economy? Over the past few years we’ve turned to Wharton professor MAURO GUILLEN to help us understand the euro zone crisis.  He’ll join us again this morning to bring us up to date on what he says is a “delicate situation, but no need to panic.”

Listen to the mp3

[audio: 061512_100630.mp3]

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