Is the Eurozone on the verge of collapse?

The European economic crisis remains in the news like a plague. I can't recall at any point in my lifetime anything that has been the focus of more news reports and run longer than this crisis except for the Vietnam war. Obviously the European financial crisis is far from being over and logic dictates that it will probably even get worse before it gets better, if it gets better.

Even before the Euro came into being I was highly skeptical, was it really so necessary not only to have a comprehensive free trade agreement, but also a common currency? This was the question I kept asking myself over and over. I drew upon my own observations as a Canadian having gone through all the trials and tribulations of the FTA (Free Trade Agreement) and watched the further complications as it evolved into NAFTA (North America Free Trade Agreement). The growing pains were substantial and we [Canada/USA/Mexico] didn't have the additional problems of a common currency to worry about. Now it seems my worst fears are coming true, the economy is in chaos, unemployment is at record highs, countries are fighting amongst themselves and it's all about laying blame for the crisis and bickering about who should pay to fix it. Sometimes it appears that there is even a possibility that the Eurozone itself could disintegrate.

As Brazil Animator I see postings and I'm getting PMs on almost a daily basis from people all over the Eurozone desparate to get out. Many refer to it as a "sinking ship". I have to wonder how bad it must be there when it forces people to think seriously about uprooting themselves and their families, risk their entire future to come to a country still in development, full of its own problems and dangers.

So, my question to you - all forum members who are either of European origins or who have spent extended periods in Europe - is this:

Just how bad is the situation in Europe? What's your take on things and your predictions for the future. Is there a chance that the Eurozone is in danger of total collapse and the Euro could cease to exist?

Your comments are invited

Cheers,
William James Woodward - Brazil Animator, Expat-blog Team