Just one decade after the European single currency was launched amid fanfare and fireworks , its future looks uncertain as the debt crisis that engulfed Greece , Ireland and Portugal threatens the entire bloc -- and the wider global economy . Spain , the bloc 's fourth-largest economy , is the latest country to be swept into the crisis . In June , it was forced to seek up to €100 billion in aid from its eurozone peers to shore up its banking sector . Spanish prime minister Mariano Rajoy said the deal had demonstrated the advantages of cooperation within the bloc and meant `` European credibility won , the future of the euro won [ and ] Europe won . '' Why ratings agencies take center stage in crisis . But the markets have remained skeptical , pushing up the costs of Spain 's borrowings despite the bailout . Italian borrowing costs have also gone up as investors fret the problems will spread . Greece , meanwhile , faces its second election on June 17 and risks being ejected from the bloc . Many analysts saw it all coming of course , arguing that one fiscal system could never work for 17 EU countries that adopted the euro , serving more than 330 million people . The flaws were exacerbated after some countries were suspected of fudging their numbers , including Greece which in 2004 admitted it gave misleading information to gain admission to the eurozone . The crisis exploded after Greece revised its figures to show its 2009 budget deficit would be 12.7 % of gross domestic product -- far higher than the eurozone limit of 3 % . The bloc -- whose financial fractures may not have been apparent during the boom years -- then began to unravel . After Greece 's dire numbers were revealed , investors panicked and the country was unable to raise money to fund itself . The country was forced to take a €110 billion bailout from its eurozone peers and the International Monetary Fund . But Greece 's bailout , rather than stemming the panic , served as a harbinger to the debt crisis . Eurozone debt crisis glossary . The European Financial Stability Facility , or European bailout fund -- set up to deal with further financial stumbles -- was quickly tapped again . Ireland , felled by a black hole in its banking system , was forced to take a €67.5 billion bailout package in November 2010 . After the markets then closed their doors to Portugal , it was also forced to take a €78 billion bailout . The troubled nations implemented austerity measures to try to rein in their hefty piles of debt , but confidence in the bloc 's ability to stabilize itself continued to fall . The crisis may yet engulf Italy , which makes up 17 % of the eurozone economy . Greece , Ireland and Portugal make up less than 6 % between them . And so Europe 's politicians and officials have desperately tried to sort out the mess by coming up with ideas including boosting the bailout fund , bringing the disparate economies closer financially , and tapping other markets for funds . Their previous measures proved ineffective , as the markets -- and the world -- remained unconvinced at the bloc 's ability to survive in its existing form .
Debt crisis that 's engulfed Greece , Ireland , Portugal still a threat to entire eurozone . Greece now faces its fourth election , regarded as an effective referendum on whether it wants to stay in the eurozone . Many said 300 million fiscal system could never work for one countries and one people . Crisis exploded after Greece admitted the boom years budget deficit would be 12.7 % of GDP .