Put together a union of strong countries like Germany and weak countries like Greece and what will happen? Will the weak countries learn from the strong ones and become fiscally responsible? Or will they expect the strong countries to support them and drag them down in the process?
The later appears to be the case in Europe, where sovereign debt contagion has spread from Greece, Italy, Spain, Portugal and Ireland to threaten the European banking system.
Many European governments have spent recklessly and even attempts to keep the crisis from spreading are being met with wide resistance. Once a government entitlement is given, it is difficult to take it away.