Luxembourg and the European Debt Crisis?

Will someone explain the following (PLEASE SIMPLIFY):


how did the European Debt Crisis happen?


how is the European Debt Crisis affecting Luxembourg


What does luxembourg plan to do about the debt crisis?


What are the possible ways out of this crisis and what have other countries done?|||A debt crisis comes from spending too much money. A lot of Developed countries have the habit of running "deficits", which means they are spending more money than they earn. In order to spend the extra money, they borrow it, and of course they must pay interest on what they borrow. This goes on for years and decades, and then the debt and deficit get really, really big (like in the US). Only a few countries really try to break even and not run deficits, but my guess is that many countries in the European Union have a large debt. Eventually (like in the US, Greece) you hit a point where you owe so much damn money that you need to start cutting services or raising taxes. I don't know much about Luxembourg, but if they are being asked by the EU to lower their deficit, then they will have to cut services or raise taxes.|||1.It was a property bubble and overspending in Greece,Spain,Portugal Italy and Ireland.


2. The EU with members countries and IMF will provide funds with condition that the crisis countries must enter austerity program.


3 It affects long term interest rate and the value of the Euro.


4.Force the crisis countries to accept the conditions.


5.A cooperation is a must.