I have seen several reports that indicate the Euro area sovereign risk situation is more benign than what faces the US and UK. I disagree.
The current spreads between the UK and the Euro area do not accurately reflect the EU countries liquidity risk.
The UK, conversely, does not suffer from this risk as it is a sovereign currency issuer. The UK does not need to "get" pounds in order to "fund" deficit spending in order to stimulate aggregate demand and therefore employment.
As for the U.S., it happens to possess the world's reserve currency in addition to benefiting from the aforesaid sovereign currency issuer status.
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