What is the euro crisis?

"Euro crisis" is a financial crisis that has gripped the eurozone since the beginning of 2010, after it became clear that Greece had provided incorrect information about its debts. This led to great unrest in the financial markets and put the future of the common currency, the euro, at stake. In addition to Greece, Ireland, Portugal, Cyprus, and Spain also needed financial support to stay afloat.

The crisis forced European leaders and ministers, under great pressure from the financial markets, to quickly build missing parts of the economic and monetary union, including the creation of the European Stability Mechanism (a permanent emergency fund), a joint economic and fiscal policy, and the development of a banking union.

The biggest panic in the euro crisis only disappeared in the summer of 2012, after Mario Draghi, president of the European Central Bank (ECB), promised during a historic press conference: “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”