Are the Germans destined to save the euro?

Hopes that the creation of the euro would force rational economic behaviour on all sides were in vain Oskar Lafontaine, the German finance minister at the launch of the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.

BERLIN (Reuters) - Reeling from a debt crisis that has spread to the very heart of Europe, the continent is looking once again to the Franco-German duo that dreamed up the euro to save the single currency from ruin.

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster". "The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt," he said.

Yesterday German Chancellor Angela Merkel came flat out and said, "To save the Euro we must Destroy Germany". Well not exactly, but she may as well have because that is the implication. This is what she did say: Germany Is Ready to Cede Some Sovereignty to Save the Euro

BERLIN (Reuters) - The German government no longer rules out agreeing to the issuance of euro zone bonds as a measure of last resort to save the single currency, conservative newspaper Welt am Sonntag reported on Sunday.

The single currency could not survive Greece leaving it, predicts Jeremy Warner.

Full fiscal union would allow us to profit from Europe, even as we sat on the sidelines, says Jeremy Warner.