Euro: Too big to fail

Germany has a strong argument against measures to bring relief to its indebted neighbours, but something must be done to help these countries, writes Yannos Papantoniou.

GERMANY’S arguments against introducing eurobonds, expanding the eurozone’s bailout fund, and instituting a system of economic governance are transparent and easy to understand. But are they right?

The Germans fear that such innovations would lead to a rise in domestic borrowing costs, and to fiscal transfers to poorer countries.