Photo Gallery Euro Under Attack by Speculators
Where has the Euro-Phoria Gone? A Paris street is lit up with Christmas decorations celebrating the imminent introduction of the euro on Jan. 1, 2002. The prevailing mood in the months leading up to the date when euro bills and coins went into circulation was of optimism for a better future with Europe's new common currency.
Now, though, the euro is under attack like never before, as hedge funds speculate against Greek debt. Here, riot police officers protect a branch of the National Bank of Greece during clashes with demonstrators in Athens on Feb. 24.
The euro was introduced with great fanfare on Jan. 1, 2002. But the promises on which the common currency was based have since turned out to be lies.
Guards outside the Greek parliament: Athens has responded to the crisis with a series of harsh austerity measures.
The enemies of the common currency also include John Taylor (seen here) and Jonathan Clark, two major American speculators who run New York-based FX Concepts, one of the world's largest hedge funds.
An investigation launched by the US Justice Department two weeks ago suggests that the attackers may have taken a conspiratorial approach at times. The authorities suspect that hedge funds run by Paulson and other industry giants, including the fund headed by legendary investor George Soros (seen here), were planning a concerted attack against the euro.
The Lisbon skyline: Other members of the so-called PIIGS group are also under threat. The rating agency Moody's has warned that Portugal may face a "slow death."
Italian Prime Minister Silvio Berlusconi: In 2009, Italy had the highest national debt in the EU, at 115 percent of GDP.
Protestors in Dublin: Ireland relied too heavily on its financial sector during the boom years.
Abandoned apartment buildings near Almeria: The construction sector, which had previously been the motor of the Spanish economy, has plunged Spain into crisis.
Deutsche Bank CEO Josef Ackermann recently flew to Athens to meet with Prime Minister George Papandreou and discuss how the country could borrow fresh capital at reasonable terms. But Ackermann's plan was rejected by the German government.
German Chancellor Angela Merkel was full of praise and recognition for Greek Prime Minister Georgios Papandreou after the two leaders met last Friday to discuss the Greek financial crisis. His government, Merkel said, 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."
A demonstrator throws a rock at police during a protest in Athens March 5. There has been public outrage in Greece at the new austerity measures.
