Cold Water

Münchau: Germany’s Foolish Euro Confidence

It’s too late to save the euro by shuffling leaders.

The business press seems to think installing technocrats to lead Greece and Italy will save the euro, but Wolfgang Münchau cuts against the grain in Monday's Financial Times, saying his colleagues are too optimistic. German officials seem to think replacing leaders and implementing austerity are enough to end the crisis. “This unsurprisingly complacent view misjudges the underlying dynamic of the most recent events.” The euro zone needs a major euro bond, which would require greater—and more controversial—political integration. And the crisis is just moving too fast. “When the decision day comes, the day when the crisis reaches its bifurcation point, [leaders] might not be ready. Unfortunately, we are now at, or very close to, that point.”