[pxeger1]

Is it at all realistic to expect the stable and/or fiscally conservative countries to accept the high bond yields imposed by the more fiscally loose or perceived-risky countries? Could this ever happen without the EU centralising more control over fiscal policy?

[notahacker]

No, it wouldn't work without the bond repayments being owed by a single fiscal entity, and hard to imagine Europe doing this for the foreseeable future even if they agree more tax harmonization and budget deficit rules.

But from the bondholder perspective, being able to pick and choose which countries to hold Euro denominated debt according to their risk tolerance is an advantage anyway.