A euro that continues to rise against the U.S. dollar is now the main danger being posed to fragile euro zone economies that are still recovering after the sovereign debt crisis of 2011, one economist has told CNBC.
Ireland, Portugal and Spain have become some of the fastest growing economies in Europe after receiving help from creditors to restore their finances after the crises that begun in 2011. However, the recent rise in the euro could put their recoveries in danger, according to Daniel Gros, director of the think tank Centre for European Policy Studies, told CNBC Wednesday.
"That is of course the main danger point for them," he said.
"As long as the euro doesn't go much above 1.20 they should be able to continue. But if there would be an overshoot of the exchange rate then of course they'll have a problem because with their large foreign debt they don't have a second wheel on their machinery," Gros said.