The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Euro Zone Crisis 2010

  • Daniel Gros
  • Cinzia Alcidi
Reference work entry


The euro zone crisis is commonly regarded as a sovereign debt crisis. This definition certainly applies to Greece, but the Irish case represents an almost pure specimen of a banking crisis voluntarily transformed into a sovereign crisis. A debt crisis in two small, peripheral economies could become systemic because the financial system of the euro area is overstretched and highly integrated. Had the Greek and Irish crises occurred when euro zone banks were strong and/or not very interconnected, the euro zone crisis would not have happened.


Euro zone Bailout Banking crisis Leverage Sovereign debt 

JEL Classifications

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Daniel Gros
    • 1
  • Cinzia Alcidi
    • 1
  1. 1.