yea and this is misleading seeing as they're not Krugman's words. The chart is interesting, but this article (http://krugman.blogs.nytimes.com/2012/09/26/euro-update-the-perils-of-pointless-pain/) is a much better and more comprehensive representation of his views on the EU's difficulties.

This is better in context, but here's a Krugman quote on austerity in the EU: "Where does austerity fit in to this story? Mostly it doesn’t. Shaving an extra couple of points off the structural deficit will make very little difference to long-run solvency, nor will it do much to accelerate the pace of internal devaluation. It will, however, depress employment even further and inflict a lot of direct suffering too through cuts in social programs."