Bye, Bye Euro? A Problem of Political Economy

"Alas, it may now be too late for the eurozone. Ireland and the southern European countries must reduce their debt burden and sharply enhance their economies’ competitiveness. It is hard to see how they can achieve both aims while remaining in the eurozone." ~ Dani Rodrik

And the problem, on his account, is not one of venal, short sighted politicians (personal responsibility!) or of simply unfettering economic markets but of constructing effective centralized political institutions.