But what is Draghi able to do? Or put another way, what will Merkel let him do?

If they give a banking licence to the European Stability Funds, the Germans will scream that the ECB is bailing out sovereigns directly, which is prohibited.

Extend cheap loans to banks hoping they will buy peripheral bonds - given how much the banks have lost already doing this, is it feasible?

Mutual Euro guarantee of banks. Will Germany agree?

Joint fiscal responsibility - peripherals will not cede sovereignty.

More austerity - deeper recession and ever less chance to repay debt.

What is the answer? How do you believe the Euro mess will be solved?

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