What event caused the European sovereign debt crisis?

Question

Quizplus · Accepted Answer

The European sovereign debt crisis was caused by the global financial crisis of 2008, in which many banks in Europe invested heavily in risky assets such as subprime mortgages in the United States. As a result, when the U.S. housing market crashed, many European banks suffered significant losses and were no longer able to lend to governments or businesses. This led to a tightening of credit and a decline in economic activity, which in turn caused governments in Europe to accumulate high levels of debt as they attempted to stimulate their economies and stabilize their financial systems.

What Event Caused the European Sovereign Debt Crisis