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Is the Euro zone must regain their health through a stronger European integration to transfer money to poorer countries or must rather be oriented towards a debt restructuring, starting in Greece?

That is in essence the dilemma presented by a senior official of the euro area to a group of European ministers, other officials and businesspersons gathered at an informal breakfast at the World Economic Forum (WEF) in Davis.

If Europe hesitates between these two options, “time is running out” by certain leaders of the Old Continent did not reveal his identity, despite the relative calm markets show few days ago.

The first, advocated by the so-called peripheral countries, major stakeholders, such as Greece, Portugal and Spain, is clearly rejected by Germany, the main provider of funds in Europe.

Berlin proposes instead respect the rules and conditions their support to drastic measures for fiscal consolidation.

As for the second alternative, many economists, who estimate that some euro zone countries, starting with Greece, have no choice because of its huge debt, advocate a debt restructuring.

This issue remains a taboo in Europe and all the rumors and press reports evoke this possibility is rejected immediately.
“This would cause a horrible trauma,” judged on Friday a senior European official. The Greek Prime Minister Georges Papandreou again rejected this alternative on Friday in Davis.

“We’re not heading toward a restructuring. We have a very clear path, a road map out of our debt problem,” said Papandreou.
Greece, recalled his first minister, has done what was necessary through a grueling set and now has the solidarity of its members.

“It is not only in Greece, even including solidarity. This concerns the conditions for stability” in Europe, said on this issue a top European.
Meanwhile, solidarity is organized around the Financial Stabilization Fund, established in 2010 and will become a permanent instrument in 2013.

However, not at this point there is consensus, as some European officials privately recommended doubling the amount and others resist.
The fund is now endowed than 440,000 million euros in loan guarantees. The Economic Affairs Commissioner, Olli Rein, confirmed on Friday in an interview with the Wall Street Journal that the borrowing capacity will be increased, but did not refer to the amount.