If Greece fails due to its inability to payback its debt, then the European Union will be severely impacted, and the consequence might even spread to Portugal and Spain. It is still a tough decision to rescue Greece, especially for Germany, because the domestic support for a rescue package isn’t quite popular. A lot is at stake, especially because the possibility of the Euro currency failing becomes ever more a distant possibility.

I think this is the first step in a long painful process for Greece to reach financial stability. While it is easy to criticize the Greek government for reckless spending, one needs to realize that most other countries, including those in the European Union, have been practicing the same financial tactics.

Greece is unfortunately in a Catch-22 situation. The government is forced to cut spending and increase taxes in order to save revenues to pay up the debt, but implementing such policies would weaken the economy and in the long-run decrease tax revenue to pay up the debt. Restoring market confidence to Greece’s debt is one necessary step in escaping this vicious situation.

Furthermore, Greece is part of the European Union, and fellow member nations should do everything in their power to help Greece. It’s tempting to punish Greece right now, but I believe recovery and assistance should come first and punishment later.

Finally, some analysts are using this current crisis as another justification that the formation of the European Union has been rushed; that forming a Euro currency is a mistake, because it is an idea that does not make sustainable sense. The principle motivation for making such objection seems to be purely ideological politics, but even if we hold such objections to a serious standard we need to see the result of the European Union’s handling of the crisis to evaluate such claim. Don’t rush to judgment.