European Integration - Realities and Perspectives. Proceedings 2015
The Crisis of the Sovereign Debt - Interdependencies,
Responsibilities and Risks
Georgeta Dragomir1, Mariana Trandafir2
Abstract: The increase of government debt continues and maintains the financial crisis as an additional risk
factor at national, regional or global level. The causes which lead to the raise of the national debt can be
found in the effects of a major crisis but, in turn, this phenomenon feeds imbalances generating economic and
financial crisis. The importance o f this topic is defined by its magnitude and dynamics, in the long-term
effects on the economy, finances, policies and, ultimately, on the completeness of a state. Solutions are
available to the national public authorities in the context of regional policy, but they are circumscribed also to
the imperatives imposed by th e international lenders. Not infrequently, their efficiency was affected b y
subjective factors, along with the lack of preventive actions or of proper long-term vision. There have been
made references to the analysis of international bodies or financial authorities, at authors dedicated to this
complex problem. As method of approach we have used the bibliographic study, processing an d analysis of
data, and previous researches. The results are the analysis and explanation of specific de velopments of
sovereign debt crisis, of interactions, highlighting the effects and solutions. The research is an important b asis
for specialists, public authorities and academics. As value, the work is a synthesis and a comparative analysis
so as to identify trends, responsibilities and solutions.
Keywords: financial crisis; international creditor; budget deficit
JEL Classification: G01; H63
In the current stage of the world, crises are becoming more complex and virulent, they involve
extensive forces, produce upheavals and disorders in the most diverse spheres (economic, monetary,
financial, social, moral, political, public and private sector) they propagate with speed in time and
space and they have a more extended period.
The 2008 financial crisis was accompanied, in turn, by the exchange rate crashes, banking crises,
currency debasements (Reinhart & Rogoff, 2008) and it expanded including in public finances of the
developed countries and the effort of public authorities failed to resorb many emerging imbalances.
1Professor, Ph D, ―Danubius‖ University of Galati, Romania, Address: 3 Galati Boulevard, 800654 Galati, Romania, Tel.:
+40.372.361.102, fax: +40.372.361.290, Corresponding author: firstname.lastname@example.org.
2Associate Professor, PhD, ―Danubius‖ University of Galati, Romania, Address: 3 Galati Boulevard, 800654 Galati,
Romania, Tel.: +40.372.361.102, fax: +40.372.361.290, E-mail: email@example.com.