How To Put An End to All Future Euro Crisis?

Jean-Claude Trichet, the president of the European Central Bank, called for the creation of a European Finance Ministry on Thursday. The New York Times reported that Trichet desired the existence of an institution that would oversee spending by all countries that used the euro currency. An institution that would "oversee" the spending of member states might also, presumably, have the power to enforce limits on spending. This may eliminate future crisis within the euro zone, as profligate countries would have their spending reigned in--thus preventing any member states from following the trail blazed by Greece. That could be a pretty powerful institution if created. Creating a powerful financial institution that could regulate the finances of member states would be a major step towards a more integrated Europe. At what point does this become a slippery slope? Does a finance ministry require a ministry to enforce its decisions? How about a strong central judicial system to settle legal financial disputes? At what point does this all start to look like a United States of Europe? The people who founded the United States may have foresaw potential debt crisis (like the one Greece faces) far in advance. They solved that problem by having the federal government assume the debt obligations of the states. Will the EU go down that road? Traders anticipating that the EU will emerge from this debt crisis stronger than ever and more centralized might consider taking a position in the euro. WisdomTree Dreyfus Euro ETF EU may do well if the euro rallies, as EU attempts to return a value corresponding to the general strength of the euro. Traders who believe that the euro zoned is doomed and that the concept of a United States of Europe is far-fetched might go in the opposite direction and take a short euro position. ProShares Ultra Short Euro EUO attempts to return the inverse value of the euro and may rally if the euro depreciates.