Eurobonds are the only answer to Europe’s crisis; Mario Monti, Financial Times, July 20, 2011

Eurozone leaders face a fundamental choice when they meet on Thursday.

Either they declare, once again, that they stand ready to do “whatever is necessary” to overcome the eurozone crisis, or they actually do it.

In the first case, markets are likely to step up to the next stage of their challenge to the European authorities.

They will target larger countries, such as Italy and Spain, thus making the “whatever necessary” ever more costly and ever less credible.

There is growing consensus that it would be difficult to find a lasting solution to the eurozone crisis without the use of eurobonds.

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