Germany and France's drive to force Greece to honor its euro commitments risks backfiring on Chancellor Angela Merkel and President Nicolas Sarkozy.
A week after the currency's guardians declared for the first time that it is possible for the 17-nation bloc to shrink, U.S. stocks tumbled on concern German politicians are already creating exit chutes for the weakest members.
The sell-off suggests Europe's crisis is spiraling into a new stage as investors bet on which countries are most likely to quit the euro, starting with Greece. The risk is that this will make it harder for debt-laden countries to convince investors they can get their finances in order and for policy makers such as Merkel, Sarkozy and European Central Bank President Mario Draghi to bolster the euro's defenses.
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