In an extremely positive development Italian Prime Minister Mario Monti said a majority of EU leaders support euro-bonds. This is what absolutely has to happen to recapitalize the banks, fund sovereign debt, and get past this crisis period. Germany and the other AAA’s will see a much larger long term benefit by keeping the EU together due to the benefits they get to their export sector from the single currency. In return for subsidizing additional debt costs the ECB must have some authority over fiscal policies and budgets. Anything less than this means that Europe is going back in time to a much more nationalistic and less competitive economy.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.