I don't see that there are any insuperable obstacles to Portugal Spain Italy, Greece and Cyprus simply acting under their own sovereign powers to form such a union. I am of the impression that there is not a lot of formal legitimation of the EMU from the EU. All of the real action is between heads of state who, by now, are largely representing the leading financial interests of their countries. Were the above countries to coordinate withdrawal from the EMU and form a Seuro Monetary Union, especially one that included elected representatives from each member to an economic coordination policy board or some such which had mandated approval power over general SMU and SCB policy it would likely have more democratic legitimacy than does the EMU at present - but that is not a high bar.

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