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Although Chancellor Merkel wants to follow this course - and even the Bundestag approved — the system would still be torn to pieces by the German Constitutional Court unless justified by radical EU Treaty changes which would take to turn the years require referendums and face a populist uprising in half of Europe.

What the German people is being asked to do is to abandon fiscal sovereignty and payment transfers to open-ended in the South of Europe, on a charge up to six times the reunification with the eastern Germany.

"If pooling us the debt of the countries of the edge to the South-West of Europe, we are mortgage the future of our children: the level of indebtedness is astronomical,"said Hans-Werner Sinn, head of the Institute the Germany IFO.""

Any attempt to support the status quo will be cement imbalances in the current account of EMU North and South, to the detriment of both sides.

"I doubt that the current leadership of Europe did include the economic consequences of their decisions." They repeat the mistakes Germany made up of reunification, "he said the Handelsblatt".

Transfers to the East still run €60bn per year, two decades after the fall of the Berlin wall. Is there any significant East–West convergence for the past 15 years.

To those who blithely argue that economic and Monetary Union is a good racket for German exporters because it locks in the Germany advantage he retorts that a trade surplus is the reverse of a deficit from capital. Germany saw €1 trillion - or two-thirds of its economies together since 2002 - leak off financing of economic and Monetary Union, evisceration investment at home party. It is toxic to the Germany too.

It is not surprising Eurosceptic that Europe should have reached this fateful point where leaders must choose between twin trauma of EMU burst or abandon their countries. Is not a surprise to an internal core of cheaters in the Community system, who always calculated that they could exploit a crisis of catalyzing the political union.

However, is a great surprise to European leaders, and they do not know what to do about it.

Chancellor Merkel and President Sarkozy seems to refuse even to increase firepower ease of European financial stability while in that they are rights.

Drama moved beyond the point where the promise of "shock and awe" global can achieve anything. Markets are already beyond the periphery devastated by the debt at the heart of the creditor, fearing that bailout costs will create a string of contamination. Credit default swaps on the France have increased over 100 basis points where they stubbornly lingering.

Fitch report European stability mechanism (GER) said the new Rescue Fund "could lead to less" on sovereign risky because the EU would have instant debt seniority, leaving private holders exposed to risk of larger haircut. To make matters worse, debt restructuring would be dependent on the fantasy of politicians. Inconsistency of rescue equipment feeds the debt crisis.

As EU leaders flounder, the task of saving the monetary union drops to the ECB. But it too has decreased burden, refusing to go nuclear procurement liaison. "Each country must be held responsible for its own debt," said Avenger monetary ECB, Jurgen Stark Germany.

He joined the week by Mario Draghi, Governor of the Italy and candidate for the ECB Chief, who said that there is no work for a bank to make tax rescues last. "We can easily cross the line and lose everything we have, loss of independence and essentially violating the Treaty", he said.

Indeed. Maastricht prohibits the ECB to buy debt of the euro area States except for specific purposes of liquidity management. But this saga no longer has anything to do with liquidity. South Europe faced a solvency crisis.

The ECB has postponed its threat far from ready accessories under the banking systems of pigs. Beyond of what it has limited itself strikes in the Ireland small illiquid debt markets and the Portugal battle buy enough bonds piston low yields and burn some hedge funds.

The effect was lost within days. It has little impact on Spanish and Italian bonds in all cases. Spanish yields 10 years reaches 5 45pc last week, well above the 5mC level where arithmetic compound comes into play.

At the end of the day, the debtor Governments still have to persuade the Japanese life insurers, Mideast wealth funds or French and German, to bring real money to buy their obligations to a bearable interest rate banks.

Credit Agricole said last week that he would return to the auction week next Spanish because it is not yet clear whether the ECB will be back-stopping the country debt. "The risk is just too important to our appetite,"he said.""

If we drift on growing in 2011, when Portugal must raise yields €85bn €38bn, Belgium, Spain €210bn and Italy €374bn - according to Goldman Sachs.

European leaders seem to still hope strong global growth will lift everyone on the reefs. This too is wishful thinking. Recovery brings its own set of problems and make intra-EMU tensions still worse.

Germany smite the buffers of inflation and the strength of the ECB to raise interest rates before the net benefits of trade began to make a difference in South closed economies. Floating Euribor rate shaping 98pc Spain mortgage loans have been pulling already, then same as wages fall. The noose still tightening of the Spain.

EU elites reflex is to blame this structural mess on the lack of political sense.

"There of something surreal about the conduct of the financial crisis," said Stefano Micossi College of Europe, the sanctuary sanctorum of the European project.

"Leaders reluctantly well what is necessary to avoid the disaster at the last minute until it is too late, and the next minute they go back to behavior that brought first against the wall." "The euro area is poor need a psychiatrist", wrote VoxEU

"If the eurozone follows this path, all sovereign debts become German public debt, or the euro collapse," said.This is admirably candid in a sense, but the current crisis is really just a failure of leadership? Is dysfunctional EMU on the first day? Has he not inflict negative real interest rates at the Club Med and the Ireland in the years of boom, their conduct in the pro-cyclical policies distastrously?

A it does not lock in the chronic imbalances between North and South? Has not left the victims trapped in debt deflation or subsidence States that went too far to meet a cure of austerity and hence it seems y have no leakage on acceptable terms Germany?

Should blame us the current leaders of unhappy, or guilty men of Maastricht, which created this machine disaster? If the project itself is rotten, certainly that the euro area must longer is an entrepreneur undertaker.

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