What has been suggested for a while was to draw a line of the economies that the stronger economies (okay, Northern Europe) will be willing to save and those that are on their own. Those within the wall will have their banks supported and access to something like Eurobonds, where the stronger economies guarentee some portion of the borrowing for the weaker ones. This would prevent problems in Greece from driving up borrowing costs in Spain and Italy and also prevent runs on their banks, both of which would cause them to join Greece.
Of course, the Germany would demand that those countries borrowing money would continue reforms. If they were unable or unwilling to implement these reforms, this plan would cause more problems that it would solve.
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Date: 25/5/12 02:01 (UTC)Of course, the Germany would demand that those countries borrowing money would continue reforms. If they were unable or unwilling to implement these reforms, this plan would cause more problems that it would solve.