Title of the thesis: Are financial aid packages an appropriate solution of European debt crisis? -- German Case study

The thesis investigates the effects of bailout approval on German bond market prices with respect to its membership in the Euro Area. It focuses on Germany's role in international financing and the influences of this activity on domestic investors' behavior. Germany as the biggest provider of ,,aid packages" have to bear a large amount of costs due to this fact and bond markets reflect higher perception of investment risk. The quantitative analysis revealed very low influence of investment incentives on investors' behavior and proved investors' lasting skepticism regarding the successful solution chosen by European Commission and IMF as a ,,cure" for Euro Area debt crisis. Based on the picked datasets, I modulated two specific situations. First one considers only financial package approval. The second one combines the bailout approval with reform efforts. No matter the situation, the aid packages have only insignificant immediate effect on financial markets and economy. Therefore, it is possible to say that the bailouts are not the most effective solution of European debt crisis from short-term point of view.