From Liquidity Crisis to Sovereign Debt Crisis


This paper summarizes the results of empirical research on European Union s evolution in terms of macroeconomic stability in a period in which member countries crossed from a liquidity crisis to a sovereign debt crisis. So, the evolution of the EU member countries is analyzed as the sovereign debt crisis has worsened and has become increasingly dangerous for the stability of the European economy. The research that is the subject of this paper aims to segment the EU member countries according to the degree of macroeconomic stability. Also, this segmentation process is performed according to two indicators that are highly important for macroeconomic stability, namely the sovereign debt, expressed as public debt to GDP, and fiscal and budgetary discipline, expressed by the ratio of budget balance to GDP.


macroeconomic stability, sovereign debt, budget deficit