Europe is facing a big financial crisis caused by problems with both government debts and banks. The crisis started because some countries in Europe were spending more money than they were making. This put a lot of stress on the banking system. European leaders made decisions to help fix the problem, like creating a banking union and taking special actions to boost confidence in the financial markets. These actions helped to improve the situation and stop the financial markets from breaking apart. To make things better, Europe needs to increase how much money people are spending. Germany plays a big role in making this happen.