I’ve mostly focused on the fact that the European Central Bank’s Germany-centric tight money policies are making recovery in Spain and Italy impossible, but note that they’ve even got Germany teetering on the brink of recession now.
What they sometimes seem to have forgotten in Berlin and Frankfurt is that the European Union isn’t some kind of German charity project. The idea has long been that Germany’s economic fate is actually tied up with the fates of its neighbors. Pursuing policies that nuke the economies of all of Southern Europe is not ultimately helpful for anyone. A little inflation would be a small price to pay for making the Euro workable.