A Euro corollary here in the U.S.

State governments DO have liquidity risks in an analogous way to EU members. Now, all that is needed is for the assets contained in the Sate systems to appreciate in value.

The definition of "essential" public services should also be examined.

The Trillion Dollar Gap: Underfunded State Retirement Systems and the
Road to Reform

$1 trillion. That’s the gap at the end of fiscal year 2008 between the
$2.35 trillion states had set aside to pay for employees’ retirement
benefits and the $3.35 trillion price tag of those promises.

Why does it matter? Because every dollar spent to reduce the unfunded
retirement liability cannot be used for education, public safety and
other needs. Ultimately, taxpayers could face higher taxes or cuts in
essential public services.

A new report from the Pew Center on the States, The Trillion Dollar
Gap: Underfunded State Retirement Systems and the Road to Reform,
shows why states must take strong action now—or taxpayers will suffer
later.

To a significant degree, the $1 trillion reflects states’ own policy
choices and lack of discipline:

• failing to make annual payments for pension systems at the levels
recommended by their own actuaries;
• expanding benefits and offering cost-of-living increases without
fully considering their long-term price tag or determining how to pay
for them; and
• providing retiree health care without adequately funding it.