The uncertainty that the European debt crisis has created can be controlled. Most EU countries want the German government to bail Greece and Italy out by either loaning them the money needed or collateralize the Greek and Italian bonds with German credit rating.
Chancellor Angela Merkel does not want to put its country's credit worthiness on the line without securing the risk. Germans want to be able to influence the fiscal policies of other E.U. countries. If that happens EU will change into a fiscal as well as a monetary union. that way Germany would be able to control the government spending of Greeks and Italians.
The Greeks have to accept deep spending cuts to their public benefits and austerity, otherwise these crisis will continue to get worse. European leaders will meet again this week to discuss the possibilities; however, Last Friday, Merkel again ruled out the creation of eurobonds, which could drive up borrowing costs for creditworthy nations such as Germany. The European Commission has proposed issuing so-called stability bonds as part of a plan to pool government debt across Europe.
http://money.cnn.com/2011/12/04/news/international/european_crisis_summit/index.htm?iid=SF_BN_River
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