This is the Special Pleading Fallacy writ large. Models do not magically become more reflective of reality merely because they are more complex. The best models simplify the situation to the highest useful degree. The simple but unpleasant truth is that the only free lunch in the universe is increased efficiency and that is rarely aided by adding complexity. Complexity far more often is a way for bad actors to hide their parasitic behavior, and Europe has no shortage of bad actors.

There is no painless way to put your capital structure on a sound footing. People have to go bankrupt. People have to lose their jobs. It's the only way capital is transferred from bad mangers to good managers. That's why it's called a "correction" and if you postpone it, all you do is increase its intensity.