It is surely not an attractive proposition for, say Spain, to have labour laws coming from Berlin, a currency from Frankfurt, but debts remaining in Spain.
And, in a nod to political business cycle theory:
Outsiders are often amazed to hear that all the bail-outs so far – the loan to Greece last year and the set-up of the European Financial Stability Facility last May – have not yet cost the taxpayer a penny. These are loans backed by guarantees. Once we start resolving the crisis for real, it will get expensive.
Both are from Wolfgang Münchau, in a very good piece. His bottom line:
I am not sure which crisis Ms Merkel’s resolution mechanism is going to resolve. The one I have been observing for the past year will carry on.