I've seen several analyses lately, one in particular on Chris Hayes's show, which claim the financial crisis in Europe is not so bad, because, after all, Germany can print money. Katrina vanden Huevel said printing money is fine, but if they put an austerity requirement on the bailout, it will be counter-productive. In other words, if Greece, Italy, Spain, etc. just spend all the printed money and don't do anything to bring spending under control, all will be fine. I suppose if they get in trouble again in a few months, Germany can print more money. Truly amazing.
Germany has experience with inflation, so surely Merkel's economic advisors are not as ignorant as vanden Huevel.
There will likely be requirements for austerity measures, but there will unlikely be actual austerity. Greece and the southern European nations like Greece are accustomed to government dependence, and now they can quickly grow accustomed to dependency on Germany. Germany will make a big mistake if they bow to pressure and bailout Greece and others. I don't have an easy answer, but printing money is not the answer. Greece and the others will need to do what America needs to do -- implement systemic changes which liberate market forces, then grow their way back to recovery. I think Germany realizes this, but so far I haven't heard anyone state explicitly that free markets are the solution. Like many in America, Europe still believes more statism can cure what statism has infected.