The crisis of the real estate market and the financial sector in the US in 2007 also affected the EU, triggering the worst global economic and financial crisis since World War II. By numerous stabilization efforts and rescue programs, the collapse of the financial and economic system could be avoided for the time being, however, the question arises, for how long. Due to the economic crisis and various stabilization packages, government debt has exploded in all member states. This thesis approaches the issue of government (national) debt from an economic point of view. In the first chapter, the concept of government (national) debt and its various forms are presented. Thereafter, theoretical foundations of the most important variables for the definition of government (national) debt are discussed. The second chapter provides an overview of the major key points of the EUs policy towards government (national) debt. The main legal foundation of the EU, the principles of the austerity policy and the so-called Basel III rules are outlined. In the following, the development of government debt at EU level is described and analyzed with a particular reference to Austria and its key performance indicators. In the third and final chapter, the financial repression as a mechanism to reduce government debt and therefore possible solution approach is presented and critically examined.