European Union

In response to the ongoing financial crisis challenging European monetary union, numerous observers have warned of the potential for a collapse not only of the euro, but of the entire integration project. How would you respond to such a warning? Rather than describing current events or forecasting the likely outcome, focus on explaining the larger context for how we should interpret the emergent tension. Why do we observe such problems (as the uncertainty and disagreement over how to respond to the current predicament), and what aspects of the development and structure of the European Union do we need to know in order to appropriately assess claims about the unraveling of monetary union and the integration project more generally?
Develop a clear, direct, logical and substantive argument. It is imperative that you fully and appropriately cite all sources (and you will most likely need to draw on scholarly as well as journalistic sources).