Europe's financial turmoil and the impact it could have on the rest of the world are the overriding focus of international financial markets. Will the euro survive? Would its failure spark a deep global recession? How would the fallout affect the United States—even the coming presidential election? To understand Europe's prospects, we must debunk several misconceptions that have emerged about the crisis. And we must understand that Europe's troubles may spark a deeper union—fiscal as well as political—that could protect the continent from similar crises in the future.