The euro area’s debt crisis is the main topic of the upcoming summit of the European Union. But, as you argue, the “grand bargain” between the European leaders seems ever less likely (“Sovereign Remedy,” March 5, 2011). Angela Merkel is facing an ever-stiffer resistance at home. What you dub “the euro area’s reluctant paymaster” is the key to the crisis. German voters will not subsidize profligate countries such as Greece, Ireland, Portugal, Spain, and Italy. On the other hand, the voters of these countries will not accept “Teutonic discipline,” which could save the euro in the long run by stemming profligacy. And that is simply that. As you point out, a more fundamental rethink is therefore needed.  “It may be better to bite the bullet of default,” you put it squarely, “starting with Greece.” Precisely. That is the only grand bargain that is meaningful at this juncture. Everything else is a pipedream of flaky European leaders.