The European union is struggling to keep its members together this time, thanks to the massive financial mess up in both Greece and Spain. The leading global rating agencies have decided to play it straight this time around, and all of them have downgraded these countries in the last few months.
These countries are finding it difficult to borrow new loans from the market and the EU is not likely to get new funds easily from rich countries like Germany and France. UK is also struggling on its own and it may stay away from contributing towards further Greece or Spain bailouts.
There is also a slowdown in China and US which can pull down the exports revenue for the European countries. That could only complicate things for Europe as a whole, and the PIGS countries might start defaulting anytime in the next six to twelve months. With two rounds of additional funding already done for the weak European countries, it would be politically difficult for rich countries to keep funding these weak countries further.