Crisis Imperils Liberal Benefits Long Expected by Europeans

The deficit crisis that threatens the euro — along with an aging population and low growth — has undermined the sustainability of Europe’s standard of social welfare.

http://www.calculatedriskblog.com/2010/05/spain-regulators-seize-cajasur-uk.html

From the Times: 300,000 jobs in public sector face the axe

Detailed research by The Sunday Times shows that at least 300,000 workers, including civil servants and frontline staff, will lose their jobs over the next few years.

Some estimates suggest that the number of job losses could reach 700,000.

These will include tens of thousands of health service managers as well as many thousands of doctors and nurses ... Thousands of police officers and their civilian support staff ... 20,000 jobs will be lost at the Ministry of Defence ... including some frontline soldiers ...
The link
http://www.timesonline.co.uk/tol/news/politics/article7134040.ece

Crisis Imperils Liberal Benefits Long Expected by Europeans

The sums are finite. Bonded debt will deal with it at moderate cost.
They will do much more damage trying to "Pay as you go."