To Krugman its fiscal austerity:
Europe has surprised me with its political resilience — the willingness of debtor nations to endure seemingly endless pain, the ability of the ECB to do just enough, at the very last minute, to calm markets when the financial situation seems ready to explode. But the economics of austerity have played out exactly according to script — the Keynesian script, that is, not the austerian script. Again and again, “responsible” technocrats induce their nations to accept the bitter austerity medicine; again and again, they fail to deliver results.
The charts below indicate that the real ‘austerity’ is coming from the ECB and monetary policy. It seems that Germany would be in trouble if monetary support for the zone were forthcoming. So it tells the ‘others’ that they have to be ‘fiscally responsible’. But in that case what the ‘others’ get is ‘austerity in double dose’, from both the fiscal and monetary side.
No wonder “results cannot be delivered”.
Historinhas 
Just eyeballing, it looks like German NGDP trend is +2%/year but EuroexGerm is +5%/year. I wonder if you use +4% trend for both, if it shows the Germans just don’t buy enough stuff or allow their wages to rise.
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Wow, that’s a great graph. With idiosyncratic shocks like that, do you think the Eurozone can survive at all? Wouldn’t it be much better for southern Europe to have its own currency, if not each individual country? A common currency just doesn’t seem worth it to me.
A more structured account of the Eurozone conundrum:
https://thefaintofheart.wordpress.com/2012/05/27/meade-swann-and-how-two-simple-lines-perfectly-illustrate-the-eurozone-conundrum/
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