Eurobonds or Bust

The eurozone’s institutional weaknesses have been laid bare. The attempt to run a common monetary policy without a common treasury has failed. Investors do not know what they are buying when they purchase an Italian bond – is it backstopped by Germany or not? We now know that the best credit must stand behind the rest, or else bear runs are inevitable. Debt mutualization alone will not save the euro, but, without it, the eurozone is unlikely to survive intact.