into "2 speed europe". Could be another strong arm tactic like they pulled on Greece last week -- 'get in line or you're out', but maybe they're waking up to reality and seeing what the reaction would be to moving in that direction.

One thing to keep in mind is that Italy is at least a manufacturing/export power that has growth prospects (closer to Germany/France than the other peripherals). Spain is a huge Greece in terms of high unemployment, low manufacturing/exports, dependence on tourism, plus a real estate bubble still being inflated by soft banking rules on carrying values. If Italy is going, Spain is next and worse. Current plans can't handle either one without a large QE program by the ECB.