Dexia bailout forces eurozone rethink | Bangkok Post: breakingnews

European leaders have switched horses as Dexia became the first bank to need bailing out with lenders caught in a squeeze triggered by the sovereign debt crisis.

EU and Greek flags are pictured under a heavy sky in Athens. While Europe's strategy had long been to exact austerity in exchange for loans to keep over-extended governments afloat, a fierce recession in Greece and the rising threat of a global downturn again next year was already forcing a rethink.

While Europe's strategy had long been to exact austerity in exchange for loans to keep over-extended governments afloat, a fierce recession in Greece and the rising threat of a global downturn again next year was already forcing a rethink.