Ideally, Europe would respond to these setbacks by strengthening its union, creating more of the institutions it needs to manage interdependence. But the political will for that kind of move forward seems lacking, even for the most obvious steps. For example, on Tuesday the European Commission proposed the gradual phase-in of a Europe-wide system of deposit insurance, which is the bare minimum needed to maintain stable banks within a currency union. Yet the plan faces furious opposition within Germany, which sees it as a giveaway to its spendthrift neighbors.
Read Full Article »
