Isn't the central question/controversy here? Or, if I may take the liberty of asking the question as you might, how does such an economy fix itself? As usual, one can find a reputable economist to support either side of the argument. And while an elitist like me can believe that voters don't always know what 's best for them, the electorates in France and Greece spoke pretty clearly yesterday about what they think of current economic policy in their countries. Greece may be a place that doesn't work properly, but regardless of who's at fault, the current economic program does not appear to be particularly pleasant for most Greeks. The UK's descent back into recession is hardly an endorsement for the Tory program either.
Where's a good old fashioned devaluation of one's currency when you really need one? The common cuurency of course prevents such easy solutions.
My daughter goes to Spain for a semester in September. I'm nervous about sending her to a place with 50% youth unemployment. The young have a habit of erupting, doing a lot of damage to themselves and others.