There is a long, and as you would expect, intriguing piece in the FT today by Niall Ferguson and Nouriel Roubini with advice on how to save the euro-zone.
It’s well worth reading in full (but behind a pay wall), but this is one key paragraph that gives the flavor:
Germans must understand that bank recapitalisation, European deposit insurance and debt mutualisation are not optional; they are essential to avoid an irreversible disintegration of Europe’s monetary union. If they are still not convinced, they must understand that the costs of a eurozone break-up would be astronomically high – for themselves as much as anyone.
All those contentions, other than the first, are debatable (which is not necessarily to say that they might not be true), but let that pass for now and turn back to this:
We find it extraordinary that it should be Germany, of all countries, that is failing to learn from history. Fixated on the non-threat of inflation, today’s Germans appear to attach more importance to 1923 (the year of hyperinflation) than to 1933 (the year democracy died). They would do well to remember how a European banking crisis two years before 1933 contributed directly to the breakdown of democracy not just in their own country but right across the European continent.
I would not underestimate for a moment the seriousness of the current crisis, its dangers or its unpredictability, but those who believe (even with the best intentions) that the only response to these problems is to take Europe even deeper into what is, in reality, a post-democratic system, should have the honesty to admit that appalling fact to themselves—and to others.