Officials at the G20 meeting this weekend agreed on the need to strengthen the effectiveness and coherence of bilateral and multilateral IMF surveillance, particularly on financial sector coverage, fiscal, monetary and exchange rate policies.

FORBES: IMF Closer to Regulating Global Financial Markets

On the contrary, it is perfectly possible for monetary unions to survive financial crises and public sector defaults.

FORBES: Kicking The Can Down The Road

Back in February, the European Commissioner for Economic and Monetary Affairs told the Financial Times that measures being proposed to tame the financial sector would work, ie, they would produce a tamer sector that would drive less growth.

ECONOMIST: European politics

While some have argued that Germany would be better off leaving the monetary union, its financial sector remains in close contact to the broader European economy, making it difficult for Merkel and the rest to give up.

FORBES: German Banks Don't Have Enough Capital To Face A Severe Downturn, Moody's Says