Brace for fresh crisis

The 750-billion-euro ($955 billion) bail-out plan that the European Union urgently came up with over the weekend to stanch a widening sovereign debt crisis that began in Greece has given global investors a much-needed shot in the arm for the moment.

The massive rescue package shows that European leaders have grasped the importance of resolute action to build confidence within and beyond Europe after the crisis sent waves of fear through global stock exchanges last week.

In an era of globalization, the debt problem of one of the smallest economies in Europe is no longer a local worry, but a global concern. Not only did it unveil the gravity of the debt crisis gripping some Euro-zone economies, it also highlighted the fragility of the ongoing global recovery by exposing deeper fears that government borrowing in bigger nations could be unsustainable.