There\’s two ways this can go really.
1) The PIIGS are hung out to dry, they default or leave the euro and the European Project grinds to a halt for a generation or two.
2) Fiscal transfers start between rich and poor EU countries. In effect, we get the economic government of Europe as well as the current political one.
Now, since 2) has always been part and parcel of the European Project as desired by some, but no one wanted to mention it (similar to how everyone agrees that those noises and smells coming from the elderly aunt at the dining table are simply stomach runbles because she\’s hungry) which do you think will happen in the moment of crisis?
Dear Ms. Klein proven wrong again: the shock leads to the increase of governmental powers and integration.