Story highlights

Debt crisis that's engulfed Greece, Ireland, Portugal still a threat to entire eurozone

Greece now faces its second election, regarded as an effective referendum on whether it wants to stay in the eurozone

Many said one fiscal system could never work for 17 countries and 300 million people

Crisis exploded after Greece admitted 2009 budget deficit would be 12.7% of GDP

London CNN  — 

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%.