Inquiring minds have already started to think about the next likely phase of the present crisis, and it appears that all they are finding are new reasons to sell PIGS debts and their currency which is the euro.
Nobel Prize-winning economist Robert Mundell claims Italy is a bigger threat to EU stability than Greece. Italy has about 1.8 trillion euros ($2.5 trillion) in "declared by statistics" public debt. The latter could be magnified by derivative contracts used by Italian municipalities and other swaps deals made in the past.
I still contend that the most effective solution to the present EU sovereign debt crisis would be to issue jointly EU bonds to refinance gradually all the maturing debt of the PIGS. This would not only significantly reduce the cost of financing of PIGS debt, while creating a EU bond market, but it would replace any International Monetary Fund role and/or conditional loans.
If then EU would like to replenish yearly, not in emergency, the European Bond Fund, which mainly will issue EU bonds, a financial transaction tax, or any other Pigouvian tax on the finance industry, could be implemented for the purpose. The same EU annual budget, whose total EU revenue for 2010 amounts to some EUR 141.5 billions could be funded by this type of resources instead of the traditional ones which Member States collect on behalf of the EU and transfer them to the EU budget.
In this way the debt crisis could be turned "easily" and favorably, with the issuance of EU bonds (suggested also recently by George Soros) and a common Pigouvian tax, towards further integration of monetary and fiscal policies within EU.