The political shift in Europe has certainly rewritten the script on the debt crisis. Up until a few of weeks ago, the Germans seemed to have forged a consensus in favor of fiscal austerity.

But first the socialists overturned Slovakia's commitment to Germany's "austerity pact," and then in the Netherlands a vote of no confidence turned out the government that had agreed to it. Anti-austerity politicians have gained in Italian and even German provincial elections. Even before such election results, Italian Premier Mario Monti began questioning the single-minded commitment to austerity. European Central Bank (ECB) President Mario Draghi has done the same, though for different reasons.

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