Personally, I think that Krugman captures the challenge excellently in the following sentence:
Saving the thing (viz. the Euro) requires credible bank rescue, sufficient intervention in Spanish and Italian bonds to keep yields manageable, and high enough inflation in Germany that the south doesn’t face an impossible need for deflation.
Whilst, I broadly support Paul Krugman’s views, I think that economists should remember that the delays in decision-making in Europe are because of the checks and balances of democratic processes. On the other hand, it would help if German Chancellor Angela Merkel was less cautious and incremental. In my view, Angela Merkel has an opportunity to be a radical visionary, with her place in history.