Greek Fire, Part 59

And now things are Getting Real(tm) in Europe.

Finance ministers and central bank governors from the world’s leading economies agreed to coordinate their response to Europe’s financial crisis on a conference call that dealt with Spain and Greece.

Group of Seven officials said they will work together to help both euro-area countries place their public finances on a sustainable footing, Japanese Finance Minister Jun Azumi told reporters in Tokyo following the call today. Azumi said he urged European leaders to do more to address investors’ concerns about the region’s finances.

European representatives “said they will speed up their efforts to resolve those problems, which was encouraging to us,” Azumi said. “Japan is ready to provide support if there is anything we can do.” The officials didn’t discuss a possible Greek exit from the euro, he said.

Less than two weeks before a Group of 20 summit in Mexico that will take place as Greece holds its second round of elections in as many months, German Chancellor Angela Merkel is facing increasing pressure from colleagues inside and outside the 17-nation euro area to apply Europe’s biggest economy to do more to stem the crisis. With the impact spilling over into the global economy, Spain for the first time today appealed for external funding for its banking system. 

Yeah.  Suddenly things have gone from nebulous to "coordinated G-7 response needed."  Merkel looks like she's in over her head.  Spain is now asking for money outright.  Greece?  Well, who knows.  But the fire is now burning in the Fatherland.

Buckle up, kids.