So, the problems were solved how?

I present to you - a lengthy piece in the NY Times about whats going on in the #eurocrisis.  Some choice quotes

The market bid the value of the eurodown below $1.30 for the first time since January

This is not necessarily relevant - if the euro goes up, people will be yelling about people losing faith in the dollar, bad policy, blah, blah

pushed the interest rates the Italian government must pay on new bond issues up again, apparently unconvinced that a little more austerity and a little more bailout money would save the euro

This is bad.  As in end of the world bad.  Italy's rates in their bond sale was 6.47%, which is pretty close to what the secondary market is currently trading at (6.7%).  Basically,  people are saying We expect a 6.5% haircut, at the very least.  Whats even worse is that this is, really, unsustainable.  Assuming nominal inflation (2%?) Italy's economy needs to grow at 4.5% to basically make their payments without killing themselves.  4.5%?  4.5%?  As a reference, they've been averaging less than 2% growth over the last decade or so, and this year, its been less than 1%.  So yeah, it isn't going to happen.

“It would be fatal to completely remove the disciplinary effect of rising interest rates,” Mr. Weidmann said. “When credit becomes expensive for states, the appeal of further borrowing sinks. Good fiscal policy must be rewarded through the credit costs, bad punished.”

The cheerful and absolutely non-moralizing Mr. Weidmann is the head of the Bundesbank (Germany's Fed).  And, as best as I can tell, he is saying Its OK if all the countries are f**ked in the long run, because, you know, they are Doing The Right Thing.  
F**ked?  Why?
Well, picture Italy.  As long as they grow at less than 4.5%, it means that their debt is increasing.Which means that they need to sell more bonds to just keep up.  Which means that the market sez We trust you even less.  Which means that the yields go up even more (read, the interest rate they have to pay).  Which means that they also have to take even more of their tax money, and use it to pay creditors.  Which means that they have even less to spend on public services.  Which means that the growth rate goes down even more. And so on down the deflationary spiral of doom.
Its ok if you die, as long as you did the right thing.  Sounds wonderful, and especially at Christmas time, sounds remarkably appropriate, but its fairly stupid, given that you don't have to die!  There are solutions out there!.  Enter a remarkably appropriate image from @Pawelmorski:

Meanwhile, at least four more European Union members — none of them using the euro — have expressed reservations about the agreement, which only Britain definitively opposedat the summit meeting. Some leaders said in Brussels that they wanted to consult their parliaments. Hungary, Sweden, Denmark and the Czech Republic now say they want to see the text of the proposed treaty, which is meant to enforce strict limits both on members’ annual budget deficits and on their cumulative debts, before fully committing themselves. France and Germany hope to have a draft of the treaty approved by the end of March and ratified by the end of 2012.

The treaty, as a whole, is already dead since Britain vetoed it.  But now a bunch of other countries (including Sweden and Denmark, who actually *are* smart about this.  Remember the Swedish crisis from the 90's?  They learnt from it!) have basically said No way Jose.  We're not falling into your gloom spiral.

The hope is that outside countries will contribute as well. In Brussels on Wednesday, a senior European official said Russia might provide up to 10 billion euros; 

Oh joy! $10Billion!  Sounds like a lot, right?  Unfortunately, even reasonable estimates for the amount needed come to $2.5 Trillion.  Yup, thats Trillion, with a T.  Thats like you coming to me asking me for $2500, and I give you a tenner.  Not much help, really. Especially given that Italy has to roll over around 360 Billion Euros next year.  Yeah, thats going to happen easily the way things are going, with $10 Billion from Russia.

And, in closing, a wonderful quote from the ever charming Merkel

“This process won’t last weeks,” she said. “It won’t last months. It will take years. This process will also be accompanied by setbacks. It is not the duration of the process that is decisive. What is decisive is whether we have the necessary patience and endurance, if we do not let reversals get us down.

In short - you're f**ked. Tough.