Just How Bad is the European Debt Crisis?

Poland has appealed to Germany, the European Union's most powerful economy, to show leadership and avert the collapse of the euro zone. He said the euro zone's sovereign debt crisis now posed the biggest threat to the prosperity and stability of Poland, which is outside the common currency but still hopes one day to join (Reuters).

"I demand of Germany that, for your own sake and for ours, you help it (the euro zone) survive and prosper. You know full well that nobody else can do it," said Sikorski, Poland’s Foreign Minister. 

Berlin has also come under heavy international pressure to allow the European Central Bank to embark on unrestricted purchases of stricken euro zone countries' sovereign debt through quantitative easing. Germany has so far strongly opposed both Eurobonds and a more active role for the ECB, citing fears that indebted countries would no longer have an incentive to reform their economies and also concerns about reigniting inflation. 

On the other hand, France’s credit rating may be put on negative watch just weeks after S&P published an erroneous message on France's AAA credit rating.  A French newspaper says the country's rating "might" soon be put on review for a potential downgrade by the firm (DJ).

It seems like the only good news for now is hope.