Confused about the economic crisis in Europe? NMA explains it all! For years, the European common currency was hailed as a great success, facilitating trade between member nations and lowering the cost of borrowing for countries like Greece. However, when the world economy got tough, it became difficult for Greece to service its debts. If Greece were not tied to the Euro, it could let its currency devalue, making Greek exports more competitive. However, there is no mechanism for exiting the Euro. The collapse of Lehman Brothers in 2008 eventually caused a global financial crisis. What would be the consequences if European banks suffer a similar collapse? Germany and other European countries do not want to rescue Greece financially, but they may have no choice if a Greek default threatens the Euro.