Financial panics are events that blur the line between liquidity and solvency. A firm is solvent if its revenues (in a discounted presentvalue sense) exceed its expenditures. A firm is liquid if it is able to raise enough funds – either by borrowing or by selling assets – to pay its current costs.
I might add that Europe lacks a budgetary instrument to support social adjustment in crisis countries, which could have prevented dramatic situations – schools without heating and hospitals without medicine – such as we saw in Greece. On 14 June the ECB announced, as expected, the end of its policy of asset purchases, referred to as quantitative easing or QE.