Only politics is preventing a solution to the eurocrisis. Uh-oh. - Dan Drezner

http://drezner.foreignpolicy.com/posts/2011/11/28/only_politics_is_preventing_a_solution_to_the_eurocrisis_uh_oh

Furthermore, looking at the Franco-German crisis bargaining, any actual deal to bolster EFSF resources, empower the ECB, and/or create something approximating a fiscal union would require that Southern Europe agree to remake their domestic economies to more closely resemble the German model.  This has always been Merkel's bargain:  she's been willing to cede greater power to the EU provided that EU policy preferences looks more like Germany.  This makes sense for Germany, but the kind of wrenching changes and adjustments that will be asked of Spain and Italy are massive.  The fact that Berlin -- rather than Brussels -- is the source of this diktat will add a fun new level of political difficulties as well. 

Drezner's point being that the correct policies are clear to the policymakers. At the same time the correct policies are impossible to pursue, because of domestic politics and cultural mores. Hence a crisis develops that will only avert when the possible dangers outweigh the risks of internal/domestic politics.