BBC Article explaining what is happening in EU

http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/8706936.stm

Excerpts -
The eurozone has a currency and a central bank but no central government. In place of that, the 1992 Maastricht Treaty imposed common rules: low budget deficits, national debts below 60% of GDP, no bailouts and no central bank intervention in the market for government debt.
....
The problem is that, just as with Wall Street, the rules were a fiction.

The Greek government, with the help of Goldman Sachs, had moved some of its debts "off balance sheet", just like Enron and Lehman Brothers.
....
Northern Europe has seized control of southern Europe - and for me, this completes a process of risk-transfer that's been under way since Lehman collapsed.

In the autumn of 2008 all the risk was in the banking system.
Then, states all over the world took on that risk and for a year they contained it.
Now the risk is passing from small states to big states. And it's passing to somewhere else - to the streets.