...Europe works along the principle of pacta sunt servanda...

There are several layers of meaning to this statement. It is true that, for a pact to work, the terms of the pact must be observed, at least in part and by most of the signatories. But that does not give such a statement, in Latin, any divine authority. The countries of Europe could make a pact that, henceforth, the sun shall rise in the west, and all could dutifully look to the west in the morning, but that would not make the sun rise in the west.

In order for a pact to work it must be workable. In order for that pact to be honored by its signatories, it must be honorable. This is manifestly not possible with with the treaties that have given form to the EMU and no amount of rhetoric from the core or compliance from the periphery will able to make those treaties work. This basic fact must be acknowledged and the appropriate changes must be made before this situation can be resolved.

Acknowledgement of the flaws and their consequences seems unlikely to happen in a timely and orderly manner. Germany has clearly benefited from the current arrangement and the price Germany will pay for this remains largely in the future and uncertain in nature. Perhaps the citizens of the periphery will submit to being, effectively, badly used and abused domestic servants of wealthy Germans, but that will still not make them able to pay unpayable debts. Nor will German control of their societies and economies make such payment possible. But such an outcome might make the costs to Germans of writing down these debts more palatable.  

 

"It is not necessary to have hope in order to persevere."