I do understand the debt spiral argument. However if you look at eurostat public debt graphs (http://goo.gl/XX9f5 http://goo.gl/XX9f5) it seems to me that Italy

I do understand the debt spiral argument. However if you look at eurostat public debt graphs (http://goo.gl/XX9f5 http://goo.gl/XX9f5) it seems to me that Italy,Spain,Finland "Debt to GDP" all went down from 1995 to 2008, of course then the financial crisis drove it way up. If I recall correctly it is always reported that Italy now has the highest borrowing costs since the introduction of the euro zone, but that it had even higher debt + interest rates in lira areas... However Greece is a totally different graph, it seems that the Euro gave access to cheap credit for the first time and they took as much as they could get. Or some of the former numbers are fake, who knows. I guess there are two problems: 1) Current interest rates are unsustainably high 2) Unsustainable public policies... Eurobonds would probably solve 1) but increase the danger that 2) doesn't get addressed.