Upon agreeing the Greek rescue package, euro area policymakers were confronted with the prospect of immediate and total market collapse. German representatives were overrun by demands for debt mutualisation inherent to a policy design pushed by France, the Comission and the ECB but also the IMF and the US. They contained the damage by establishing an intergovernmental rather than communal bail-out fund with pro-rata liability. They did not grasp the situation as a strategic opportunity to achieve a level shift in European integration. The ECB more openly entered into the process of monetising state debt as part of the stabilisation effort. Exercises in governance reform were futile and limited to rearranging the provisions of the SGP. Also this chapter pays attention to domestic developments in Germany, including the fig-leave attempt at promoting a Financial Transaction Tax (FTT) and the government’s fiscal policy strategy of consolidation.