The plan forward with the Eurozone crisis is the German plan forward. Germany has proposed closer fiscal union and increased austerity for EU-17 nations with high deficits and/or high debt burdens. This path suits German interests well because there is little that needs to be changed. Unfortunately from Spain’s standpoint, the German path forward is not what Spain needs. This dynamic is highlighted with yesterday’s unemployment releases. Spain hit a 22.8% unemployment rate, which is an all-time high, while Germany released a 6.8% unemployment rate, which represents a new low since German reunification. Here is a chart of the unemployment rate spread (as defined by Spain less Germany): It is clear that Spain needs dramatically lower interest rates relative to appropriate monetary policy set rates for Germany. It is...





