The eurozone debt crisis deepens by the day, with a Greek default and now an Italian debt panic looking inevitable. If the Italian bond market sees an increasing outflow in the coming weeks, the crisis could escalate so far that there will be a break-up of the euro.
However, there is a viable alternative to a break-up, and that is for the leaders of the eurozone to have the courage and vision to introduce the ‘Six Pack’ of economic governance reforms, along with a steady progress towards a federal political union, and to do it very soon. This is just what Graham Bishop advocates in ‘The EU Fiscal Crisis: Forcing Eurozone Political Union in 2011?’ In his book, EU expert Graham gives three scenarios for the future of the eurozone: an inflationary debt spiral; default; or the emergence of a collectively strong, federal eurozone. Events seem to be proving him right. It seems only the third option is open now to the leaders of the eurozone, who, as Bishop states, must do whatever it takes to avoid disaster.
You can read Graham's views on the actions the eurozone leaders urgently need to take here .