Practical problem solving begins with Grasping the Situation (GTS).
The European Union is one our biggest international problems.
EU failure would cause much disruption & pain around the world.
Is the EU viable? If so, what governance changes are needed?
How can the prosperous north help the struggling southern countries, unflatteringly known as PIGS - (Portugal - Ireland - Greece - Spain)?
EU bureaucrats appear have jumped to a countermeasure -- AUSTERITY!
Have they grasped the situation?
Michael Jacobides' terrific HBR piece suggests NOT.
Interestingly, Jacobides' grasp of the situation mirrors a conversation I had in Greece, and shared in Reflections of a Business Nomad.
If we accept Jacobides' argument, the countermeasures are clear, but difficult.
As he explains in a follow-up piece, "Dinosaurs die hard"