Analysis of the European Government Bonds and Debt after the European Financial Crisis

Abstract

PurposeThe objective of this paper is to determine the effects of the European debt crisis on the European government bonds.Design/methodology/approachIn this paper, we present the European government bond; we explain the European debt crisis; and we examine the evolution of the European debt.FindingsOur results suggest that the increase of the European debt contributed to the increase of the risk and the default of the European debt and to the depreciation of the economies of the European countries.Originality/valueWe calculate the value of the European debt risks in normal cases and in the case of crisis with normal distribution.