Give their massive debt loads and hopelessly regulated industries, will they come back up without massive upheaval? It's going to be awful hard to stave off default in the big countries with falling tax revenues. If you think about the mechanisms for recovery, there aren't many left open to them. Robert Reich's fascist fantasies aside, there aren't going to be massive stimulus programs from bankrupt governments. The ECB has already cut rates to practically nothing and has been printing money like crazy.
The only thing left is a total rethinking of the business-government relationship and an increase in economic freedom. After watching the Spaniards and Greeks freak out over such things earlier this year, I can't see that happening without plenty of rioting.
Of course, they could do nothing at all and let things continue as is.