The article examines how the financial system's interdependence affects the risk of countries defaulting on their debts in the Euro area. The researchers found that systemic risk increased after the global recession and during the Euro area debt crisis. Small countries defaulting could lead to larger countries facing similar issues. In the European Union, bigger banks with riskier activities and poor asset quality are more vulnerable to a country defaulting. Surprisingly, having more debt doesn't necessarily make banks more at risk.