“Jose Manuel Barroso has defended the concept of a eurozone bond, claiming that they will make sense once there is tighter fiscal union.”
I’ve lost count of the times Merkel has more or less said: “Over my dead body.” However, it is hard to see a way out of this. Merkel has the choice:
A) break the law, break her word, disgust her compatriots, lose her parliamentary majority, take a huge gamble with inflation and destroy the reputation of the ECB and any vestige of seriousness that Germany has left.
B) both accept the sovereign default of Greece, Italy, Spain, Portugal and even France AND ensure the destruction of the euro
Since Germany – though not innocent – is not the prime cause of all this, this is rather an unfair position to be in. I don’t envy her this dilemma.
As for Boringoso, he will only make sense once back in Portugal trying to sell whelks.