Abstract:

Since the World Economic Depression of 1929 in developed economies, the economic crisis did not cause a serious debt problem, especially in less-developed countries, high debt and cost of debt was known as a chronic problem. However, although the sound of footsteps, the crisis erupted in 2008, and with the decline in the U.S. housing market, the so-called subprime mortgage collapse of credit markets, over-growing derivative markets since the 2000s, and the associated impact on banks, i.e., the financial system has brought to the point of bankruptcy. Having a transnational network of financial markets, the crisis has led to the spread of the whole world. At this point the sovereign debt crisis in some countries, the international monetary system, economic preferences, the current account deficit, borrowing for the purpose of regional development and investments have emerged for reasons such as ineffective use of resources, and today has become a very serious problem. In our paper, to address this issue we will provide a solution to the debt crisis in Europe and measures after an assessment will have determined in econometric.

Keywords: