Here is the latest popular view of what will become of the euro zone, put forward by billionaire investor George Soros:
“Germany is likely to do what is necessary to preserve the euro – but nothing more. That would result in a euro zone dominated by Germany in which the divergence between the creditor and debtor countries would continue to widen and the periphery would turn into permanently depressed areas in need of constant transfer of payments. That would turn the European Union into something very different from what it was when it was a “fantastic object” that fired peoples imagination. It would be a German empire with the periphery as the hinterland.”
Since Mr. Soros presented his view in Italy on Saturday, the text of his remarks has gone viral, with some people calling it the best analysis so far of what went wrong in Europe.
Reuters blogger Felix Salmon offers a good summary of the Soros argument, which says German Bundesbank holds too much debt from weak European banks to walk away from the monetary union.