The size of Europe's bail-out fund needs to be more than the 500 billion euros currently envisaged, Italian Prime Minister Mario Monti said on Tuesday, but he declined to give an alternative figure.
Speaking to reporters in Brussels, Monti said the European Stability Mechanism, due to become effective in July, needs to be increased but he refused to confirm reports that he had asked for a capacity of 1 trillion euros, Reuters reports.
The PIIGS countries have huge welfare/bureaucratic governments, which means their revenues will never keep up with spending. Further, increasing taxes won't do the trick as it will only result in more of the economy going underground while others flee. Greek and Spanish youth are heading to Brazil.
Parts of the eurozone are becoming a wasteland.