The infamously so called 'PIGS' (Portugal, Ireland, Greece, Spain) of Europe threatened the stability of the continent. They had built up unsustainable budget deficits.
In May, Greece were rescued with a $110bn package. In November, Ireland were given a $85bn emergency loan. Both countries embarked on deep austerity cuts, sparking fierce riots on the streets of Athens.
The Eurozone was called into question as it limited the powers of its members to control their debts. They were unable to devalue their currency which would have mitigated their woes.
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