European Treasury?

Inaction in Europe to meaningfully address the Eurozone criss is not a maor surprise due to the political forces but we're comign to a point where something has to give. They have responded with emergency action when required, typically by buying up bonds of the deificit nations, which shows that they can move swiftly to avoid disaster. They have been necessary measures but the heart of the problem lies in the structure of the Euro which can't be solved by buying up bonds.

During the turmoil of the summer there was a feeling that certain countires may consider exiting the Euro to save themselves and this is still a widely supported strategy in Germany. The alternative is to commit fully to the Euro, pool national debts and have a central European Treasury able to issue jointly backed Eurobonds. Up until recently this idea has been opposed in Germany as it is likely to be very costly to them however they are begining to digest the implications of abandoning the Euro altogether, which is likely to result in a total meltdown and deep recession.

In my opinion the common European Treasury is the only feasible option and may finally settle the markets and convince the wider populous that the heart of the problem has been address. There would be significant austerity measures to pay for the move so it won't be an overnight solution but the sentiment should change for the better.