I have said it more than a few times on BNN: there are only three ways out of the current sovereign debt crisis in Europe, and only the last two are permanent:
1. Turn the current Monetary Union into a Fiscal Union as well. There is no way the current account surplus country that is Germany will back the ECB, or anything else, until they have guarantees that the current account deficit nations will follow-thru on fiscal austerity. Short of German troops entering Greece et al to enfore fiscal austerity, this is pretty good news...WSJ on Sat 11/26/11...
This can be seen as a very large band aid solution - more like a tensor bandage that could last several years. Long enough for a period of nomalacy at least.
2. Massive haircuts on the debt. The implications for the private sector are enormous but it sure does get rid of the debt....premanently.
3. Massive central bank money printing with ensuing debt purchases. The implications with this are for hyperinflation. While every central banker and politician the world over would love a whiff of inflation, hyperinflation, where Brent goes to $200bl, would not be great for economic growth....in fact it would strangle it by the throat.