Not all debt is the same in terms of seniority. When a bank fails, the depositors gets paid first, then the bondholders in decreasing order of seniority of the bond (not of the creditor).

I agree discriminating on the basis of nationality will instantly run afoul of the EU courth of justice.

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman