The Year the European Crisis Ended

The European crisis came to an end when first political leaders and then the European Central Bank promised to do whatever it takes to safeguard the euro. Specifically they committed to create a European banking union and to buy unlimited amounts of sovereign debt in distressed markets for governments that made a binding commitment to reform. Markets were initially sceptical and yet ultimately persuaded by the commitment of European elites. Events in Italy and Cyprus threatened to return Europe to crisis and yet were ultimately managed without major turmoil. Somehow along the way, however, the desire of European elites to do whatever is necessary began to waver and their commitment to banking union diminished. The European crisis has ended but Europe is not yet resilient enough to ensure that it will not recur.

Erik Jones is Professor of European Studies and Director of European and Eurasian Studies at the School of Advanced International Studies (SAIS) of the Johns Hopkins University, Italy. He is also Senior Research Fellow at Nuffield College, UK, and a contributing editor of Survival.

Prologue: How Europe Fell Into Crisis
1. Europe Decides to Act
2. The Markets Respond
3. Risk Returns through Italy and Cyprus
4. The European Crisis Ends
5. Beyond the European Crisis