Shakespeare’s The Winter’s Tale – set in Palermo, and also Bohemia - suggests that where there is close affection and love there also may be more exposure to envy, jealousy, uncontrolled anger,attempts to punish, and guilt. It involves inter-sibling and inter-group dynamics, attributions, misattributions, but also transgenerational metapmorphosis creating new meanings, and how envy and jealousy - if reconciled – may redeem guilt and generate psychic surpluses rather than only deficits. The paper outlines these but also relates such dynamics to the current crisis of the Eurozone and Kleinian splitting and projective identification. It suggests that the crisis is the first time Germany that Germany has been able to split from guilt (Schuld) – especially for the Holocaust – and been able to project guilt for debt (also Schuld in German) onto the peripheral European countries, and that transgenerational metapmorphosis will depend on recovering the good in credit as the inverse of debt. 

Keywords: Jealousy; Guilt; Debt