How Germany can avoid a two-speed Europe

Berlin is imposing these arrangements under severe pressure from German public opinion, but the German public has not been told the truth and is therefore confused. The solution to the euro crisis to be put in place at the end of March will set in stone a two-speed Europe. This will generate resentments that will endanger the EU’s political cohesion.

Two fundamental modifications are required. First, the European Financial Stability Facility must rescue the banking system as well as member states.

Second, to create an even playing field, the risk premium on the borrowing costs of countries that abide by the rules will have to be removed.

George Soros, FT