How did it all start?

There are those that have argued that the role played by the ECB has created the today's scenario;

Willem Buiter in October 2009

The euro has become a currency on steroids.  Its relentless nominal and real appreciation since the end of 2000 was briefly interrupted in the second half of 2008, but resumed with a vengeance during 2009.  The strength of the currency is hurting the exporting and import-competing sectors of the Euro Area.  Unemployment and excess capacity continue to rise

Paul Krugman June 2011

the euro is strong because German real interest rates are higher than US rates: the nominal 10-year rates are about the same, but the ECB is expected to be more hawkish on inflation than the Fed...

..So the euro is strong even as the euro system, the euro as a project, turns into a train wreck.

In July 2011 ECB raised interest rates again, as Business reports

The eurozone debt crisis did not stop the European Central Bank raising interest rates for a second time this year on Thursday as it focused on the "day job" of fighting inflation.

BBC November 2011

Europe is in the grip of tough austerity measures - some of the deepest public sector cuts for a generation.

The colossal debts and rock-bottom growth of eurozone "periphery" nations - especially Greece and Italy - have hammered market confidence. The interest rates (yields) on their sovereign bonds have soared, making it hard or even impossible for them to borrow in international markets.

ECB Commissioner Barnier

The real crisis the Eurozone faces right now is a crisis of confidence. Our political unity and our determination and our ability to rectify what is wrong with the way the euro currency works and is run are being tested.

We must not deny that the situation is serious. The economic recovery, which was well underway, has almost come to a halt.

Alan Kohler says its the last call for the ECB

It is hard to avoid the conclusion that the only way the eurozone crisis will be resolved is through massive debt monetisation by the ECB. It has become a little bit pregnant with the 1 per cent three-year loans; it will soon be time to go all the way.