Eurozone's South still poses an enormous risk

[admin]

Greece needs to be the permanent host to the Olympic Games. That would solve a lot of problems.

Actually, since ever fewer countries wants to host these, that kills two birds with one stone. The bigger problem is Italy, however:

• They can't recapitalize their banks with public money because of eurozone bail-in rules
• They can't revive their economy and get off the deflationary trajectory like the Czechs did, as they cannot devalue
• So they're forced to 'internal' devaluation to recouping lost competitiveness, undercutting German inflation which is almost zero. But this deflates nominal GDP, which wrecks havoc with debt dynamics. It's a ticking time bomb.