It is incredible how the European Unions's summit is being misreported. Is this because economic journalist dont understand the facts of the issue, or is it because they purposefully hide those facts? Ignorance seems the simplest answer.
What we have here is the classic situation where a society has ended divided into two opposite classes: the owners+creditors vs proletarians+debtors. The creditors are in Germany, Holland, Switzerland; the people that is hopelessly indebted are in Greece, Spain, Italy. Exactly like Greece before Solon, exactly like Rome before Tiberius Gracchus, exactly like Judea before each Jubilee year (49 years). Exactly like then, the creditor class is resisting fiercely any forgiving of debts and fights to keep enslaving the population, forcing proletarians to sell their sons and daughters to pay debts. What else is the migration of young East Europeans to Germany's factories and brothels?
The media is like trying to convince Germans to forgive debts by diverse methods: for example, printing money and inflating the Euro would be a way to delete debts. The Germans say: Only over our dead bodies. Never. Another way is called fiscal union, by which the debts would be guaranteed by the whole community. That "solution" sounds terribly unjust to the creditors: What? I will have pay to HIS debts to ME? Do you think I am drunk or crazy?
In the past, these conflicts were solved by class war (like in Rome) or by a sage like Solon, or by a Jewish God ordering everything to start again from zero. War is improbable, Solon died 3000 years ago (if he ever lived) and the Jewish God... well, he never had much influence on Germans (vide "Small Gods" by Terry Pratchett).