Incredibly, after two bailouts it appears that it won't be enough. And the EU has to decide whether to keep bailing them out or try and insulate themselves from the fallout of a Greek default.

The Greek government didn't even come close to fulfilling the terms of their bailout.

Reuters:

After a weeks-long review of the country's finances, inspectors from the European Union, IMF and European Central Bank said an 8 billion euros loan tranche should be paid in early November. But they warned Greece had made only patchy progress in meeting the terms of a bailout agreed in May last year.

"The success of the program continues to depend on mobilizing adequate financing from private sector involvement and the official sector," the troika said in a statement.

It said additional measures were likely to be needed to meet debt targets in 2013 and 2014 and a privatization drive and structural reforms were falling short. Decisive implementation of existing plans should allow next year's debt goals to be met, it said.

The money will only buy Greece and its euro zone partners a small window of time.

Germany and France, the leading powers in the 17-nation euro zone, have promised to propose a comprehensive strategy to fight the debt crisis at an EU summit delayed until October 23.

After Athens admitted it would not meet its deficit target this year, there is a growing acceptance that a second Greek bailout agreed in July may not be sufficient and a rush is now on to beef up the currency bloc's rescue fund and bolster its banks.

Europe's top financial watchdog warned that the euro zone's sovereign debt crisis had become systemic and threatened global economic stability unless decisive action was taken urgently.

The problem is that if they let Greece default, it is likely to lead to more defaults in Portugal, Ireland, and perhaps even Spain. Hence, ECB chairman Trichet's warning of a "systemic" debt crisis.