The tragic thing about the question of whether the EU is capable of facing reality is that what it asks in real terms is whether the Germans are willing to take proactive action to stop the destruction of the euro. They are the only ones in a position to do this as the euro project is clearly there to further the interests of their economy.
If Europe was truly united as some claim it is then we would not be having the current crisis right now and we would have had a functional fiscal union long ago.
The other thing that is amazing is the situation with the Spanish crisis. The Spanish government want bailout money to go straight to the banks which will of course mean that the austerity measures associated with the packages given to Greece, Portugal and Ireland would be avoided. The Germans are of course refusing to do this. I can't see how the euro can be saved any more...
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