I believe that if Europe does make austerity measures it will help fix the economy. If they tighten spending and pay some debt off then people will have more faith and confidence in the Government. It will help people spend more and invest more and not worry so much so I think it would be a great way to get things started off in the right direction again.
The European economies simply weren't ready to be united. I do understand the appeal of a unified economy, and if it had worked it would have been a truly beautiful thing. But the nations of Europe, and their economies are so varied and distinct as to make economic unity nearly impossible.
No, the austerity measures in Europe will not fix the economy, because they do not nearly go far enough. It would be like trying to use a measuring cup to stop a river that is overflowing. It is important to start to make corrections, but this done not correct course nearly enough.
You can't cut back on spending and raise taxes at the same time to grow the economy. Cutting back on spending literally takes people's jobs away. New businesses will not be born if taxes are to high. The start up costs are just to high for new businesses to get going. Austerity is never a good thing.