The European union is a cluster of countries with varying history and even contains some members who were totally out of sync with the original group of European nations. And while the European common currency , EURO, was formed nearly a decade back, the European Union majors ensured that there are strong rules in place.
But they failed in implementing the rules effectively. For example, the rule was that each member country would not allow the budget deficit to go beyond a 3% of the GDP and the borrowings would also be kept at a certain level. But in reality, almost every member country has been casually overshooting the budget deficit figure, and the four weaker countries , namely Portugal / Spain / Ireland / Greece, have been running deficits at three or four times of this agreed limit.
That is the reason why these countries are now unable to get out of the debt trap, and the EU is also being forced to pump good money behind these troubled countries.
And over the coming months, the EU may realize that it is not possible to keep on pumping in borrowed good money, behind countries without hope. So expect the breakup of the EU in the coming months of years, say experts.