I am not familiar at all with the economic health of the Euro zone. But I always thought that their system was based on real sound economics. In a way it limits inflation and government reckless spending.
What’s wrong now?? Has any austrian economist commented on this???
I dunno enough to give an in depth report but i do know many of those countries are overborrowed and overspent.
They have fiat currency, central banks and giant welfare schemes funded by deficit spending. Where did you ever get the idea Europe was somehow more fiscally sound than the US? Because the Pound is worth more than the Dollar? I’ve been wondering why that is for the past 10 years 
You have debt bubbles popping. The upside is that at least there is a limit on how big a bubble like that can grow, since Euro is not the reserve currency of the world.
@OP:
http://www.lewrockwell.com/orig10/galland5.1.1.html
The European economy is completely dominated by the State and is mercantilist to the core. However, before you go out and short the euro, consider that the stated goal of the Bilderberg group is political unification of North America and the Eurozone. The Fed is cooperating with the ECB somehow in the Greece bailout (the IMF is involved somehow, too). Political dissidents were predicting that the dollar would plummet as a result of the housing crisis but it has not. One reason it has not is that the US has been able to buoy demand for US dollars by projecting military power around the world in a manner to create a climate of uncertainty and apprehension, which has increased demand for US dollars even as the Fed doubled the money supply back at the end of 2008, beginning of 2009. Don’t be too sure the banksters in the EU don’t have some similar trick up their sleeve.
Clayton -
Europeans are historically notorious for having worse monetary policy than the US. (Except for Switzerland)
There was one time when non-British European nations kept pound sterlings in their reserves, and redeemed their currency in pounds. In turn, Britain kept dollars in reserves, and redeemed its pound sterlings in dollars.
It was a whole pyramid, which would allow each country to inflate as much as possible, provided Britain inflated at the same rate as them, and provided America inflated at the same rate as Britain.
Then the Europeans did away with this system, and simply chose instead to inflate all their currencies as much as possible, provided they kept fluctuating exchange rates with US (although exchange rates are still subject to hundreds of currency controls of each nation).
Yes, Austrian School has commented on it, and even wrote a book on it. See ‘What Has Government Done To Our Money?’