They're in a bind. Keeping interest rates as high as they are or raising them even further might help keep the actually productive EU economies like Germany and the Nordic countries in the black, but it also increases the chances of an Italian default. The southern economies are so deeply indebted that the ECB has been propping them up just to keep interest rates where they are.

This has always been the problem with the idea of the Euro.

They're in a bind. Keeping interest rates as high as they are or raising them even further might help keep the actually productive EU economies like Germany and the Nordic countries in the black, but it also increases the chances of an Italian default. The southern economies are so deeply indebted that the ECB has been propping them up just to keep interest rates where they are. L

This has always been the problem with the idea of the Euro.