Europe's growing north-south divide.
While the U.S. focuses on the fallout from Benghazi and the world focuses on Syria, the Eurozone is once again silently sliding toward chaos: Slovenia may become the sixth nation -- after Portugal, Ireland, Greece, Spain and Cyprus -- to possibly require a bailout. (See map above. All six countries are highlighted in blue.)
Currently, the country plans to implement reforms, such as a tax increase and bank privatization, and Prime Minister Alenka Bratusek boldly claimed, "This program will enable Slovenia to remain a completely sovereign state."
But, we've heard that before. The Eurozone kabuki dance usually plays out like this: A struggling country insists it doesn't need financial assistance; it implements "reforms" which don't actually help; and, inevitably, it comes begging for money. Will Slovenia receive Bailout No. 6?
It looks that way. Recently, Moody's cut Slovenia's bonds to "junk" status, and the EU's top economics official, Olli Rehn, said that it's unknown if Slovenia's reforms will be sufficient. That's not exactly a vote of confidence.
The EU is supposed to discuss Slovenia's situation further on May 29. Be prepared for bad news.
(Image: amMap.com)
