A while back I commented that the Euro stabilization fund required approval of domestic legislatures, and noted that this might be difficult to achieve in some places. Well Germany passed it, but only just. Germany's signature is the most important, so the stabilization plan is basically operable.
Remember that this is just putting a bandaid on a gunshot wound; Europe still has still decide what it's going to be.
The current debate goes beyond the emergency bailout for indebted nations to questions about the future of economic integration among the countries using the euro currency. The bloc has neither a common fiscal policy nor a consensus of how best to balance stability and growth. Many members, including France, feel that Germany’s historic fear of inflation has led to a monetary policy that has unduly restricted economic growth.
“In terms of ideology, Germany is blind in the deflation eye and France is blind in the inflation eye,” said Ms. Guérot of the European Council on Foreign Relations. “It’s about economic cultures, how you want to organize your societies and your social cohesion. And it’s hard to find the appropriate mechanism because it goes right to the heart of how your society is structured.”