This would seem obvious. After all, Italy is on the hook for a chunk of the Spanish bailout and it means Italy will be lending Spain money at 3% that it – having no money in the Treasury and all – will be borrowing at 4%.
The Germans are, apparently, feeling a bit happier about a sinking fund solution where the debtors put up their gold as collateral and accept a super-tax administered by Germans to pay it down.
A solution more sensible than just – in the most literal sense of the metaphor – borrowing a deck chair to shuffle as the ship goes down.
Update: Nigel Farage puts a bit of stick about.