Yeah, the problem is basically a clash of cultures. Central/northern strictness and high degree of accountability versus one of rampant corruption, living beyond means and not paying tax. It used to work before the Euro because, as mentioned, they just devaluated their currency rather than repay their original debts. Now they are trapped in a spiderweb and can't move in their usual ways. The last 100bn Euros they got has disappeared mysteriously and nobody can really tell whose pockets they ended up in. Sure as hell not where it was intended to go. The riots are in part because the corporate fat cats and politicians (whose corruption levels are something of a public secrect) tell people that, sorry we mismanaged so badly, you guys tighten your belts a bit while we retire to our mediterranean villas and relax in our (funded by public money) pools, so that we don't have to spoil our appetite for the latest caviar by listening to your whinging. Eat your sandals for jeebus sake, they are made out of good, nutritious leather...