Et tu, Italy?

Attention in Europe has switched from Greece, to the too big to save country, Italy.



The European bailouts facility cannot handle saving a country the size of Italy.

Meanwhile it was reviled that , Angela Merkel, Chancellor of Germany, and Nicolas Sarkozy  president of France, discussed a way to let countries leave the Euro:

German and French officials have discussed plans for a radical overhaul of the European Union that would involve establishing a more integrated and potentially smaller euro zone, EU sources say.

"France and Germany have had intense consultations on this issue over the last months, at all levels," a senior EU official in Brussels told Reuters, speaking on condition of anonymity because of the sensitivity of the discussions.

"We need to move very cautiously, but the truth is that we need to establish exactly the list of those who don't want to be part of the club and those who simply cannot be part," the official said.

This would certainly be a back up plan for them. A country may want to leave the Euro so they can print more money and use inflation to make their debt more manageable. Under the Euro, that is not possible.