Neither Germany’s chancellor Angela Merkel nor the Social Democrat opposition leaders are likely to agree to further bailouts for the countries in crisis. They fear a storm of popular outrage using national tax funds for European 'debt collectivisation' (Birchler and Bütler 2012). The governments of other solvent countries such as the Netherlands, Austria, and Finland are under similar pressures. This is also why Germany and company oppose further bailouts by the ECB.
But all this naysaying does not bring the sovereign debt problems in some Eurozone nations any closer to an end. The crisis rolls on. If it lasts long enough, the problems may drag the Eurozone into a negative spiral of recession and debt that risks exacerbating the crisis and a possibly leading to the collapse of the Eurozone.
In the face of these multiple dilemmas, governments should consider imposing one-off capital levies on the rich in order to refinance and bring down national debt (Bach 2012, Bach et al. 2011).
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