Whilst there is nothing really new in this article, it summarizes the economic policy debate for Europe. The article concludes that Germany must change her views to save Europe. There are two options. Radical monetary policy, viz. QE on a large scale or fiscal demand stimulus.
Meanwhile, it is hard to imagine that France and Italy will continue to toe the line on the fiscal compact. But if these big countries flout the rules, it will be grossly unfair on smaller countries, like Greece, Spain, Portugal and Cyprus.