The facts: Greece calls for a referendum on the European crisis deal while they’re rapidly running out of money. Europe is holding series of crisis meetings over a period of a year amidst one of the worst crises ever. There is a total lack of leadership.
Democracy in Europe currently is obviously the biggest obstacle in dealing with one of the biggest crises in history. Europe made impressive steps forward after the Second World War, but is now standing still and moving backwards from an international perspective.
While other more centrally led countries (US, China, Singapore) are either recovering or growing fast, it seems that (mulit-party) democracies are experiencing their biggest test in history. India’s democracy had some challenges along the way as well, but will without any doubt do pretty well in the long term, because of the huge population number.
Does the European crisis mean the end of democracy? I’m not sure, but if European politicians don’t implement changes to their decision making processes along the road, they might be forced to by (future) stakeholder like the US and China.