Looks like there many countries out there in EU zone that are close to bankrupt, especially Greece. Recently the EU and IMF made guarantee of up a total of $1 trillion (or $750 billion Euros) in bailout to help these countries. Have look at these article for more details:
IMF's Reach Spreads to Western Europe - WSJ.com
The Associated Press: EU seeks tougher budget rules to win market trust
Is bailing out these countries with billions the right thing to do? Will these loan actually help stabilize these countries and will the loans actually be paid back?
The bleakest picture is looking at Greece currently. Greece has already started to take out loans from the fund. However, their austerity plan has been facing massive protests. There debt reduction plan may never pass or take full effect. Other countries like Spain, Portugal, and Ireland already are lining up for help after plan was formulated. Will bailout actually solve the debt problem of all these countries?