Is Europe Burning?

Much of Europe is on fire and can do nothing about it -- long ago they used all their water for swimming pools. Germany has lots because it saved its water for just such a contingency. It's proud of the sacrifices, but resents the implication that it should sacrifice even more by retroactively saving those who could have saved themselves. But will the fire make this moral distinction upon reaching the German border?

Who will buy German goods if all of southern Europe defaults on its loans because the European Central Bank is tied to an anti-inflationary policy at German insistence?

I say, print extra money just this once, kick the offenders out of the Euro, and then give up on the notion of a close political union between peoples with thousands of years of distinct cultural development. Free trade is good; the Schengen agreement on unrestricted travel is important; and a shared labor market helps everyone. Some cross-border issues like the environment require uniform regulation. But we've learned that fiscal policies cannot be harmonized, and thus a single currency cannot work.