Any possible solutions to the European Debt Crisis?

[routsounmanman]

Kasz216 said:

routsounmanman said:
As a person who's seen this first-hand, the recent austerity and cap-spending measures are NOT the way to go. Whilst already in a recession, measures like these seriously tear the economy apart. Countries like Greece, Portugal, Ireland and now Italy (seriously they're now the greatest problem by far) simply cannot pay up longterm and will eventually drown in debt.

The European Central Bank should print some money and bail out. I don't get it why Germany resists to this so much; I'm sure a little inflation and especially a weaker Euro should be better for them.

Pretty simple really.  Printing money solves immediate liquidity by sacrificing long term solvency.  Printing money and giving it to Italy is

At this point due to irresponsible decisions, it's one or the other.

Allowing the ECB to print money without demanding austeirty is essentially the same as rich countries just giving more money to the irresponsible ones anyway, since it devalues the money each country holds.

How can you demand austerity though, when still in recession? (for instance, Greece's been in recession for 5 years!) Growth needs to come and balance it out. Also, the devalued Euro helps exports, that's why Germany joined the currency in the first place.

And frankly, even if small countries like Greece and Portugal pull through eventually, I really wonder what Italy's going to do. The whole of EU should collapse if Italy collapses too.

In my small knowledge of economics, ECB should print some money to help with liquidity, then austerity measures and the rich countries investing in the weaker ones.