How to save the Euro
To save the euro ECB needs to guarantee all government bonds issued by EU countries in euros. Once this happens we will end with interest differentials or country risk premiums that themselves are making countries like Spain and Italy go towards default. The finances of Italy and Spain would be much better if these nations could borrow at the same rates as Germany. And their economies are not as sick. Greece however it’s such an extreme case of corruption and mismanagement that it should go bankrupt. Spain has 60% of GDP in debt, Greece has 160%. I think that we can survive the bankruptcy of Greece if we know that the rest of the countries will make it.
