or is it intended to support the needs of Europe as a whole?
It is strikingly obvious that the needs of Mediterranean Europe and those of Teutonic Europe currently differ from one another.
Forming a single currency bloc was clearly a mistake. Tightening the bonds between euro area countries is only going to push the issue of divergent needs and interests into a new sphere.
At a minimum, the ECB must be permitted to issue euro bonds for the moment. But if this permits a respite, then use it to split the currency area into at least two pieces. A northern hard currency area and a southern more flexible zone. Right now, all of euro-area Europe is enjoying the fruits of a hard currency policy, which suits Germany, Holland and Austria but not Italy, Greece, Spain, Portugal, Ireland - or increasingly France.
A fair chunk of the adaptability of an economy is built into the fluctuating value of its currency.
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