My gut feeling tells me, "Yes, Europe is sinking". A very interesting (and long) article summarized by the 2 paragraphs below. I believe Europe's current condition is real-time proof that their bloated systems of social safety-nets is unsustainable. The problems in Europe aren't due to lack of revenue, they are due to expenses far above that which their working population could ever sustain. "The euro, created with the aim of permanently uniting Europe, has become the greatest threat to the continent's future. A collapse of the monetary union would set Europe back by decades, dealing it a blow from which it might never recover, especially with Europe's position already threatened by the fast-growing Asian economies. How is a fragmented Europe to prevail against this new competition? This is why Europe's politicians want to defend the euro at all costs, and why they are approving one bailout package after the next. They are playing for time, hoping that the markets will settle down and the reforms will take hold." How the Euro Became Europe's Greatest Threat Time for Plan B: How the Euro Became Europe's Greatest Threat - SPIEGEL ONLINE - News - International Someone needs to let Europe know you can't have a society that gets 6+ weeks of gov't mandated vacation, 2-3 hour lunch-breaks and a fully-funded retirement at the young age of 60 and still have an economy that can compete on an international scale. Note: I am not and would not be against minimum vacations mandated by law for certain industries & job types. There is another extreme that is just as dangerous as Europe's and that would be allowing corporations to dictate and influence labor law to the point we all work 60 hrs/wk with no vacations and no benefits. I am also heavily against the taxing of employee benefits (i.e. company paid health insurance).