Some economists can still see hope in the ashes of Europe's debt crisis. They opine that the threat of bankruptcy is forcing Governments to implement reforms, which will help Europe flourish in a globalized world. These reforms are being viewed as politically impossible due to some ingrained social attitudes.

Many changes were being dismissed as simply not being the "European way”. Many people are still doubtful that European Governments would or could tackle problems like overstuffed public payrolls, trim entitlements or even compel people to retire later.

European Governments seemed to dawdle, disunited, when it became visible that Greece's debt crisis was rattling markets all over and dragging down Europe's common currency.

The International Monetary Fund was joined by the European leaders in May, after which they agreed on a $1 trillion rescue fund for financially troubled countries. Spain cut employer costs, France rose its retirement age and Greece announced deep budget cuts.

The London-based Chief Economist for Unicredit, Marco Annunziata, shared that all these signs reveal that Europe is finally facing the reality that it must create structural changes.

He said, “Governments are reluctantly acknowledging that reforms are needed and there is no more room for delays and excuses. It looks like perhaps we are past the longest stage of denial, which in Europe has lasted at least
20 years”.