Well, I think you're misrepresenting things a tad by saying "making your beer and wrust more expensive so things don't get so tough in Madrid or Milan and they can keep retiring at 50 and having a siesta or a couple bottles of Chianti at lunch?" But your broader question, if Germany will be willing to cut the Spanish and Italian economies some slack for the bubbles they experienced (unique to their regions if I understand Krugman properly) and prevent the EU from falling apart, yeah that's the question.
Time will tell.
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Date: 24/5/12 20:23 (UTC)Time will tell.