• Euro saved when Italy, Spain not in bankruptcy risk
  • Fiscal union doesn’t help in short-term
  • Joint liability “unavoidable” to remove Italy and Spain “from “line of fire”

Comments made in an interview to be published in tomorrows’ Rheinische Post. Peter Bofinger is an economic advisor for Merkels’ government.

The comments have been totally ignored by the market, with EUR/USD rallying strongly through 1.3400, presently at 1.3425.