If you haven’t seen this piece by George Soros I would highly recommend it. He lays out a step by step plan for stabilizing the EU while also establishing the foundation for the Euro’s inevitable evolution into a fiscal union. Soros says if this is not done quickly the global economy could quickly spiral into a second depression as the EMU unwinds in a disorderly fashion:
“Three bold steps are needed. First, the governments of the eurozone must agree in principle on a new treaty creating a common treasury for the eurozone. In the meantime, the major banks must be put under the direction of the European Central Bank in exchange for a temporary guarantee and permanent recapitalization. Third, the ECB would enable countries such as Italy and Spain temporarily to refinance their debt at a very low cost.”
I think Soros is one of the few experts who has really understood the core problems at hand in Europe from the very beginning. Now, I am obviously biased because his solutions mesh with mine almost perfectly, but I’d still be very interested in reader thoughts on the subject. You can find the entire Soros piece here.