I believe that not all problems are identified yet or at least generally known, so a further decline is not impossible.
It is not only a problem for the Europeans in Europe - they may expect all kind of cost cutting measures from their governments - but also European pensionado's in non Euro-zone countries.
European pensionado's usually have a state and/or company pension based on the euro currency, and with a lower euro their income in the local currency of their new home country will be lower as well.
Recently the supreme court in the Netherlands decided that the cost cutting measure on state pension compensations for pensioners not paying tax in the Netherlands or at all - like in our case - was legally not acceptable, so the measure will be cancelled. Unfortunately it's only 34 euro.
Apart from that most pensions are not indexed - that is corrected for inflation - anymore since a couple of years, some pension funds will even decide to lower the monthly payments this and next years, because otherwise these funds are unable to guarantee their obligations towards future pensioners.
See for my case the graph on the right, the conversion of euro's to Philippine pesos.
Last year I still got 60 peso's for a euro, now I get 54 peso's, so that's a reduction of income of 10% and it can become even worse.
Fortunately we have no debts, mortgages or other financial obligations and we pay no income tax, so we can manage by just drinking a bottle of wine less. In Europe cost cutting measures and higher taxes will impact more directly the income of Europeans.
Of course the latter impact of measures will vary from country to country. In my opinion the worst case is Greece, I believe that they are not able - maybe WILLING but NOT ABLE - to implement the required measures and finally will have to leave the Euro-zone, my guess is within 6 months.
And what about the idea to split the euro in a north and south European euro? Not a bad idea for me personally I guess, but where to draw the borders and what about eastern Europe, part of south or north or again another zone? No I think it will not work. Countries who cannot meet the requirements, should leave, in case of existing members of the euro-zone. And new candidates should be screened much more than done until now.