But there's a real danger that even if Germany and France post slow or moderate economic growth, their neighbors on the periphery of Europe will contract and take the entire European Union down with them. Grumbling from the German or French electorate is likely to only grow louder. The next time you hear rumors that member states may move away from the euro, U.S. stocks will again take a hit. Investors don't like the uncertainty that might create.

Slow progress
The response to the European crisis has not been uniform. The United Kingdom has announced a massive austerity plan that runs the risk of forcing the economy into an even deeper hole as taxes sharply rise and spending is sharply reduced. The PIIGS have no choice but to be similarly austere, inviting those same concerns. France and Germany, on the other hand, are moving in a more restrained fashion. Germany just raised taxes by 11 billion euros, while France has enacted roughly five billion euros worth of tax hikes. France and Germany likely wish they were islands unto themselves right about now. But they know that a divorce from their neighbors would cause more harm than good.

Action to Take --> The current crisis spells real opportunity for companies based in these stronger countries. A weaker currency boosts export prospects and gives them a chance to make a major push into faster-growing markets like Brazil, Turkey and China.

For example, U.K.-based Diageo (NYSE: DEO), which makes Captain Morgan, Smirnoff, Johnny Walker and other spirits, notes that export sales are faring well. Shares are roughly -30% lower than before the 2008 economic crisis began and trade for about 13 times projected 2011 profits.

Investors may also want to dig deeper into Luxembourg-based Arcelor Mittal (NYSE: MT), the world's largest steel maker. Shares have lost a third of their value on fears of slumping demand, but the company is not seeing much of a slowdown and is well-positioned to capitalize on rising steel demand in Brazil, South Asia and the United States.

You should also check out Swiss-based ABB (NYSE: ABB), the General Electric (NYSE: GE) of Europe. Goldman Sachs points out that shares of ABB start to garner a higher P/E multiple whenever orders exceed shipment (which is known as a book-to-bill ratio greater than 1.0). But it notes that "the multiple has yet to respond."

ABB's sales are expected to moderately decline this year but grow by +6% to +8% next year, simply based on the recently building backlog. If the weaker euro helps boost competitiveness in other parts of the world, then growth will be even more robust.