that's true with chancellor merckel. the question of euro bonds which is ultimately creating a transfer union where the borrowing costs that the germans can borrow at very low rates would be in essence used to be used by the periphery countries if this euro bond was created. that is a huge leap forward. it would create a union but are german tax payors willing to sacrifice their credit rating and their borrowing costs for the good of the union. i think that's where chancellor merckel knows there's a huge political red line in germany. >> woodruff: and the french president sarkozy is in agreement with her on this? >> he is. he has to be because without the germans being involved none of this would happen. you have to understand there is a political credibility deficit in europe. the same as we have here. really this brings to question their economic plan of dealing with the financial crisis. you know, come back to a very old question to be raised on this show a long time ago. such severe austerity measures the appropriate