Future of the Euro

Portugal has become the third eurozone government to seek a bailout loan from the European Union, which is struggling to prevent a debt crisis from crippling its poorest members and spreading to richer euro countries. Historically impoverished nations such as Ireland, Portugal and Greece experienced a surge of wealth in the 1990s after adopting the euro. But in the wake of the worldwide economic crash and recession, that wealth proved to be an illusion based on cheap credit from Germany and other stronger economies. The euro's defenders say the crisis has created a new determination to fix the eurozone's defects, particularly its lack of strong centralized governance. But the rise of nationalist parties in richer countries opposed to bailouts could hamper a solution. And despite years of rhetoric about European unity, critics say individual nations will never give up enough of their sovereignty — especially their right to tax and spend on liberal social programs — to become part of a United States of Europe.