Is Europe Really Out of the Danger Zone?

Is the eurozone debt crisis under control?

Over the weekend, Group of 20 financial chiefs met to discuss the eurozone debt crisis and lay out strategies for how to ease global markets' fears about turning the region around.

They agreed on a plan to establish a $1 trillion fund by temporarily combining the European Financial Stability Fund and the European Stability Mechanism according to CNBC. 

U.S. Treasury Secretary Timothy Geithner applauded the move, saying the strategy would go a long way in averting a crisis, as quoted by Reuters. He added that the leaders would need to press further, however, noting that it would be necessary to build a "substantial financial firewall to support those reforms."

On Tuesday, officials in other countries were less sure that the European threat had been reduced. Ben Broadbent, the Bank of England policy maker, said despite the efforts to calm the crisis, Europe's debt remained the U.K.'s biggest threat.

"Over time the situation will improve," Broadbent said during an interview with Ulster Television, as quoted by several news sources. "But I don't think we should imagine, hopeful as it is, that these more recent policy actions have solved everything. There are risks that still remain."

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