Abstract. Starting with 2007, the European Union felt the international financial crisis within the strong and the weak economies and finances of the member states. In 2008 and 2009 it sees the problem of sovereign debt crisis, although there is a strong link between the financial crisis and the sovereign debt crisis throughout economic history. The main objectives were the actions of central banks, particularly the European Central Bank in response to the economic and financial crisis. But, in 2010, after a slow recovery, the sovereign debt crisis installed, bringing in the weaknesses of Economic Monetary Union. This paper presents an analysis of the sovereign debt crisis in European Union, focusing on the causes of the sovereign debt crisis, ways of transmission, its evolution and not least on solutions that can be found.

Keywords: sovereign debt, cause-effect, spillover, euro area.