The article isn't totally unreasonable, but there would be a much safer solution to the current crisis: Converting the BCE to a normal central bank, just like the Fed, Bank of England, etc. etc, ie a lender of last resort. http://en.wikipedia.org/wiki/Lender_of_last_resort
Of course this would require a much tighter central control on each Euro country balance, one that would make it impossible for any one country to cheat the others (as unfortunately happened with Greece). But I think that all the EU countries would accept this right now to save themselves from a potentially catastrofic crisis.
Greece is for now the only failed state in the EU, but it has such a tiny economy (3% of the EU GDP) that it would be much lest expensive to bail it out now, with a decisive move, than try to punish it for its mistakes and, in doing so, prolonging the crisis. Fixing the other imbalances in the EU would still require a lot of work, but it would be definitely be possible if the interest rates for the countries at the center of the crisis went back to normal (as it would happen with a Fed-like BCE).
Of course this would require a much tighter central control on each Euro country balance, one that would make it impossible for any one country to cheat the others (as unfortunately happened with Greece). But I think that all the EU countries would accept this right now to save themselves from a potentially catastrofic crisis.
Greece is for now the only failed state in the EU, but it has such a tiny economy (3% of the EU GDP) that it would be much lest expensive to bail it out now, with a decisive move, than try to punish it for its mistakes and, in doing so, prolonging the crisis. Fixing the other imbalances in the EU would still require a lot of work, but it would be definitely be possible if the interest rates for the countries at the center of the crisis went back to normal (as it would happen with a Fed-like BCE).