If 'entitlements', as you call our welfare states, were the problem, our economies would have collapsed decades ago (the Welfare State in the UK has been in existence since the 1940s and Germany's for much longer than that). Roger is correct: the real problem is the Greeks and others effectively lying on their 'Euro-club application forms' and then continuing to lie about their true state once they were in the club.
I expect Europeans to turn a blind eye to the problem. They like their welfare states too much too give them up easily, until it comes crashing down around their ears. Then there will be riots and anarchy when their freebies get taken away.
I'll enjoy the show and try to do everything I can, which isn't much, to keep the U.S from heading down the same road.
Even some of the brighter heads in the EU have stated that their social model is unsustainable. Borrowing to keep paying benefits they can't afford eventually will catch up to the all. France now wants to unite with Geermany, primarily to have someone to save them when their time comes.