Robin, I both agree and disagree here. The way I understand it, there is no clear legal basis for the seizure of Russian assets - which would also complicate a diplomatic solution to the conflict. This is why Euroclear wanted iron-clad guarantees. I think seizure of Russian assets would have been an irresponsible way to get around European excessive debt levels. And it would have been nothing more than a stop-gap measure.

I completely agree with you on your main point: that joint issuance of more debt further undermines fiscal discipline in high-debt countries.

But the bottomline for me is that if Europe wants to play a stronger geopolitcal role, it needs to (1) put its own money at stake (2) become a more cohesive entity, which requires deeper political union; (3) reforms for faster economic growth.

Market discipline through debt crises and write-offs, as you suggest, would certainly be an effective way to encourage fiscal prudence. But an EU disrupted by debt crises in Italy and France would be in no position to run any kind of foreign policy.