Two-year-old Eurozone crisis has entered a dangerous phase as  countries  Greece, Portugal, Ireland, Italy, and Spain have failed to generate enough economic growth to make their ability to pay back their debt.

Trade and investment relations with Europe have always been very important for India as FDI  from the countries of the EU as investments from EU is higher.

Bailout packages worth of €440 billion was established as European Financial Stability Fund (EFSF).But  it seems it is not enough as several countries may ask for a bail out.

Due to this problem  Euro may have a chance of collapse and there is a possibility of a Eurozone break-up if one or more countries voluntarily abandon the single currency. As India -EU relations are export based mainly, it may affect india as well.