Throughout centuries, the emergence of currency, financial and economic crises is a recurring phenomenon. The current debt crisis in Europe is the newest addition to this extensive development. The crisis was caused by the misguided developments in foreign trade throughout the euro area. Because of the aftermath of the international financial crisis the troubled countries within the euro area were no longer able to access international financial markets and therefore could not afford to finance their current account deficits. The ECB had to step in to rescue these countries from insolvency. But interventions failed, since the desired inflationary effect on the monetary basis was offset by the effects of monetary sterilization by the more stability orientated countries within the area. As a result, the mechanism reversing the developments in foreign trade was not set into motion. The analytical presentation of the buildup of a monetary union of two differing countries shows, that the existence of an integrated capital market yields welfare gains to both of the countries. However, if, by assumption, the heavily indebted country chooses to engage in fiscal free riding then there is a good chance that the buildup of the monetary union will ultimately result in a debt crisis. The measures and actions to end the current debt crisis are versatile. They include massive short term financial support, the implementation of replacement bonds and institutional reforms regarding the European Union and the European banking system. This master?s thesis focuses on the causes of the debt crisis in the euro Area as well as possible measures to end the crisis.