"Germany and the other eurozone members with AAA ratings will have to decide whether they are willing to risk their own credit to permit Spain and Italy to refinance their bonds at reasonable interest rates. Alternatively, Spain and Italy will be driven inexorably into bailout programs. In short, Germany and the other countries with AAA bond ratings must agree to a eurobond regime of one kind or another. Otherwise, the euro will break down."(The full article can be accessed here).
It is interesting to note that in line with neo-functionalist theory, every new step in European integration generates the need for an additional step, and so on. Completing the Single Market required a Single currency, the Monetary Union requires a Fiscal Union; will this call for an enhanced Democracy at the EU level?