Governments in Greece, Italy and Spain are falling as the upheaval in markets spreads to the palaces and parliaments of Club Med. But as has been the case throughout the long running euro drama, markets are moving faster than politics. Even as Prime Minister Berlusconi announced his impending resignation, the yields on Italian bonds rose above seven percent, the highest level yet, and a level that just about everyone agrees will force Italy into a bailout sooner rather than later.While Italy may not be too big to fail, it is too big to bail out; the IMF and the EFSF can’t handle the consequences of an Italian collapse. An Italian failure would force both Germany and France into massive bailouts of their domestic banking systems, destroy France’s credit rating and generally wreak unspeakable havoc on the increasingly fragile underpinnings of both the single currency and the European economy.Unfortunately, Club Med’s biggest problems can’t be solved by a change of prime ministers or even government coalitions. There are deep cultural and historical reasons why these countries’ economies and political systems work the way they do. Italy can’t become Denmark by an act of will or by passing a new legal code; Greece cannot become Germany and Spain can’t become Sweden.Economic technocrats always think that if Russia, Argentina, Greece or Italy would just adopt the ‘right’ policies and carry them out consistently, miracles would happen. In one sense they are correct; the laws of economics really do work, though often in surprisingly complex and indirect ways. If those countries passed the right laws and implemented them appropriately, things would change.But being who and what they are, these countries cannot produce electoral majorities to pass and sustain the ‘right’ laws — and much less can they put them consistently into practice.There is no technical fix to the deep cultural divides that separate Nordic Europe from Club Med. It seems less and less likely that there is a single currency that can fit the two groups of countries. One member of the couple likes a hot room and plenty of blankets; the other likes to sleep under a sheet with the window wide open. It looks more and more as if they will have to have separate bedrooms if they want to keep living together.The coming changes of government in Club Med will not end the euro crisis.