Europe's Debt Crisis

Abstract Europe’s sovereign debt crisis has captured the attention of people all over the world. The crisis is the result of several structural problems in the European Union, as well as the individual mistakes of some countries. The several effects of the crisis are varied and go from a European bank’s crisis, to potential default contagion to other countries, and the possibility of the separation of the European Union. European leaders seemed unable to act quickly and agree in a plan of action against the crisis, and everyday investors are getting more nervous about a possible default in several European countries. The different economic and political agendas of European countries seem to be in the way of reaching a solution that envisions problems ahead and not only solving problems that appear every day. The following paper will explore Europe’s sovereign debt crisis; focusing in Greece’s debt crisis.

Europe’s Sovereign Debt Crisis
When the European Union was created in March of 2000, the leaders of the European Union announced the Lisboan Strategy; a strategy whose objective was to transform Europe into a more competitive economy with better conditions for employment, and with regional cohesion. Now, the original aspirations of the Lisboan Strategy have vanished; Europe is plagued by unemployment, the whole region is in state of recession, and where there was spirit of cohesion there is now dissension. With the debt crisis, the structural problems of the European Union have been brought to light and the need to assess them is important to resolve the debt crisis, and not just to mitigate it. This paper will explore Europe’s sovereign debt crisis, from the causes, to the countries involved, and the possible outcomes.
Europe’s sovereign debt crisis started more than a year ago; it was supposed to be a problem of just a small part of the European Union, but now it threatens to spread to larger European countries such as Italy.