The expected hike of 0.25% in Eurozone interest rates on Thursday by the ECB will add further problems for the peripheral states. The 12 month Euribor has already risen to 2.021%. It will not be the only hike this year.
The ‘PIGS’ states do not need a rate rise but Germany does, so rates will rise.
That is the fundamental problem with the Euro, differing economies moving at a differing pace and forcing them all to accept an economic policy out of line with most.
However because the Euro is a collective political project it will be made to work somehow. That is until the electorate of these nations, including Germany wise up to the fact the being in the club just makes them poorer.