The euro is under attack like never before, as the promises on which it was based turn out to be lies. Hedge funds are speculating against Greek debt, while euro-zone politicians work behind the scenes to cobble together rescue packages. But fundamental flaws in the monetary union need to be fixed if Europe's common currency is to survive. 

German Chancellor Angela Merkel was full of praise and recognition for Greek Prime Minister Georgios Papandreou. His government, Merkel said on Friday evening after the two leaders had met to discuss the Greek financial crisis, had performed "a massive feat of strength". The Greeks, Merkel continued, had implemented a package of measures, which impressed the capital markets, "in a remarkably short space of time."

Merkel said that she was pleased to see how successful the placement of the Greeks' new government bond issue  had been. "It worked out well," she said.

Papandreou also seemed pleased as he listened to the German leader, thanking her profusely for her support and making it clear that he had not asked for financial assistance.