Which is first SPAIN or the Euro?

Cointegration or a box of bad eggs? In concert with defunct western economies, weak governments across Europe will struggle to say the least.  Greece is "easy," scenario two (UKPIS), just might require a devaluation. Speculation on how exactly this works out is irrelevant (IMF etc). The end result is simple: it is a race to the bottom, and  Germany would like a lower Euro (regardless of PIGS) and they will not bail out anyone else. Given the real dire state of Europe, their best scenario is a complete and utter devaluation.

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2453