Euro finance ministers are considering increasing the size of the eurozone's rescue funds which were set up to bail out indebted nations.
Dawn Kendall, multi-manager at Architas, uses historical examples to pinpoint why the European monetary union is bound to fail in its present form.
Ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA.
Eurozone finance ministers are considering beefing up the European Financial Stability Facility (EFSF) by allowing it to borrow money.
German MPs have voted in favour of increasing the country's commitments to the European Financial Stability Facility as part of an expansion of the bailout fund.
Although the second bailout of Greece may have calmed markets in the short-term, the recent volatility in Italian and Spanish bond markets signalled the beginning of a new and critical phase.