It's true that Greece was spending more than it could afford to. It's true that they prettied up the numbers to get into the EU. It's also true that the EU leaders knew the numbers were not completely accurate. Europe was embroiled in this romantic idea of a unified Europe, similar to Manifest Destiny in the US. So Greece joins the EU. Everyone wanted it to happen.
But Greece was spending at an unsustainable pace. That's nobody's fault but Greece, right? Germany, France, and the rest of the EU must be in the right. They didn't overspend, they were trying to help! Right? Not exactly.
Because the EU controls the ability to print money, Greece couldn't devalue their currency (print money) to spur exports, bring in tourism, and pay off debts, or put together a stimulus package to spur growth. Another country with full control of their economy (ie not in the EU) would have used one or both of these strategies to spur growth. The situation would not have escalated this far.
Greece didn't have those options, so they had to take whatever the EU offered. The only offer on the table was loans in exchange for austerity, which (wealthy northern) Europe seems to love. Greece had to take it. This is the moment that the blame shifted to the EU, instead of Greece itself. Austerity didn't work. The Greek economy contracted by 25% of GDP and unemployment shot up to 25% in general and 50% among the youth.
Five years later, Greece was in worse shape than it started. The EU effectively prevented Greece from saving itself with terrible policies. Other unions, like the United States, doesn't practice austerity, and have had much better results. The US responded with stimulus, and attempted to grow its economy. Debt is measured in terms of GDP. Greece is at 180% debt/GDP. Top lower that ratio, you can either reduce debt (austerity), or increase GDP. Greece reduced its debt by embracing austerity, but GDP contracted so much it actually erased any gains from reduced debt. The US strategy is to increase GDP. Leave the debt, it's not going away, we just have to get strong enough to carry it.
It is in light of these complicated affairs that the EU is to blame. They need to consider alternative strategies. Greece (and the rest of the EU) gave austerity a shot for 5 years. It didn't work. People are right that this sets a precedent for Spain, Italy, and any future troubled economies. They too should revolt like the Greeks if it comes to that. But that shouldn't happen. The EU should recognize that austerity isn't the way and change policies now so that Italy and Spain don't need to have a similar confrontation.
In many ways, Europe owes Greece big time. They have opened everyone's eyes. Austerity doesn't work. Things need to change. The only question is: Is the EU smart enough to heed the warning?