In light of the longevity of budget deficits, few private (brave…or disingenuous) investors will cover the required funding costs. As usual, the government will pick up the tab. Where will they get the money if they are broke, you may ask? Well, from the Central Bank by way of debt monetization. Either way, like their counterparts in the U.S., the EU can only postpone the inevitable collapse of the PIGS.
Keynesians economists are in the driver seat in the world these days (not only in the EU but also in the USA.) They do not understand the “Austrian” view of economics, and therefore reject it. Rest assured that the car they (Keynesians) are driving will certainly crash. All one can do is to try to get out of the day.