LOS ANGELES, CA (Catholic Online) - Fellow European nation Greece is seeking to slow the pace of its austerity program after it took two bailouts from the eurozone and the International Monetary Fund.

World leaders have reportedly done a deal behind the scenes to prevent Greece slipping out of the single currency before the U.S. presidential elections in November.

President Obama is seeking re-election in November and the Treasury believes that the White House will put pressure on Germany, France and other EU power brokers to prevent a Greek exit before then in order to prevent economic turmoil from muddying his chances.

"President Obama would bring a pretty large amount of pressure to bear on Germany if they tried to go before the elections," a senior government source says. Treasury officials don't think the crisis will be solved before the German elections in September 2013, therefore condemning the global community to another year of financial instability.

German Chancellor Angela Merkel has resisted calls to back "Eurobonds" that would allow wealthy countries such as Germany underwrite the debts of the likes of Greece and other stressed nations.

British officials believe Chancellor Merkel will be forced to create a grand coalition with the German opposition Social Democrats after the next election. Proposed plans for eurobonds could then be pushed through as the policy of a government of national unity.

Leader of the socialist SPD Sigmar Gabriel had previously said that his party was prepared to accept collective debt liability if Germany is granted stricter budgetary oversight of Greece.

Revelations that the Spanish may need a sovereign debt bailout has sent chills through the Treasury.

Chancellor George Osborne privately believes that the countries in the single currency have not yet done enough to put a firewall in place to prevent contagion spreading through Europe if a country like Greece leaves the euro.

The most salient fear is that a Greek exit would lead to a run on financial markets against Spain and Italy, whose economies are large enough to send Europe into a spiraling depression.

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