Germany will pick up the tab sooner or later

The eurozone crisis has not gone away, just been temporarily muted by a more assertive ECB and a sullen acquiescence by eurozone voters that debt-fuelled growth is unsustainable. But acquiescence is not a cure.

Across the eurozone unemployment, in particular among the younger cohorts, is on the rise. There is a realisation that in some countries (Greece, Cyprus) debt is unpayable; in other countries (Ireland, Italy) it may become so. Eurozone banks remain fragile.

My reading every possible solution leads to German taxpayers picking up the tab. German politicians have for the last 18 months asserted that nothing can be done in terms of implementing lasting solutions until after the German elections. These now loom so the time is coming when either Germany accepts its role as the economic leader and with it the costs, or it continues its policies of ‘I’m all right Jack’ . Either lead to costly outcomes, and it appears none are being discussed by the contenders for Angela Merkel’s job.