Nicely done video. Though I think it oversimplifies some aspects but it get the main idea through to the audience.
EU was too slow to transform into a real federal political, economic and legal entity. Everything was nice until the EU institutions were put into the test when the recession hit the fan. The crux of the problem is the uneven economic levels, strength, competitiveness of the core countries such as Germany and the periphery such as Greece. Germany was trying to do anything that it could to preserve the strength of the Euro. It pushed for austerity measures in Greece rather than devaluing the Euro to increase the competitiveness and keep the economic activity going.
The current Sarkozy and Merkel deal or mandatory budget deficit and etc that is going around the EU being voted on seems like a terrible fix to the problem. It's akin to giving an aspirin to a person having a migraine attack. It's just a superficial fix to calm down the markets from going crazy due to the inability of the EU to act swiftly to introduce measures actually fixing the problem.
Everyday I hope that Poland's gov't will be able to strong arm the EU ( just like British did recently) and redefine it's commitment towards adopting the Euro and the new fiscal pact. Giving away the ability to set independent monetary policy to such nitwits like EU is just a terrible terrible idea. Until there's a working and efficient federal structure in the EU giving up independent monetary policy is just plain suicidal.
Very interesting. From the way of things, forgiving the debt would be the best option for a speedy recovery. The way the EU are trying to go with will surely fail and only cause the Euro to do far worse.