For all the talk about the profligacy of the Southern European nations, Germany itself falls short of euro area standards, calling for budget deficits of less than 3% and government debt below 60% of gross domestic product. The latest figures from Germany are 3.3% and 73%, according to Eurostat.

“If Germany weren’t in the euro area today, it wouldn’t be able to get in, because it violates both the debt and the deficit criteria,” Buiter said.