Threatened insolvency of a euro area country: What should the EU do?

In the euro area some countries are also having difficulties in borrowing money on acceptable conditions on the international credit markets due to particularly high national debts. Dirk Meyer, Helmut Schmidt University, Hamburg, sees the possibility of a threatening insolvency of a euro-area country, which because of the monetary union is no longer a "private" affair. The strict application of the no-bail-out stipulation, in his opinion, would lead to durable externalisation of costs at the expense of the remaining euro area countries. For this reason he argues, in the context of a de facto existing community of liability, for a no-no-bail-out-strategy that calls for "unique assistance with a withdrawal of the insolvent country from the euro area". Also for Rolf Hasse, Fraunhofer Center for Central and Eastern Europe, Leipzig, the dimensions of the crisis and the number of the affected EU member states turn a rigorous no-bail-out policy into a conflict situation. The EU countries should provide assistance within the Union "but with repayment and loss compensation". In addition this assistance must be combined with economic-policy stipulations.