Can the Euro Be Saved?

A sovereign debt crisis in the eurozone has morphed into a crisis of the euro itself, revealing three deep flaws in the euro's design. Escalating inter-country debt is the predictable result of locking together the currencies of countries as different as Germany and Greece. There is no governance structure to make binding decisions about debt restructuring. Most importantly, the ECB itself holds so many risky assets that it is frightened at the otherwise logical solution of debt restructuring. Only radical action could save the common currency.