The article explores how credit default swaps can help predict financial crises, especially in European countries. These swaps are used to protect investors from losses due to defaults on government debt. By comparing the dynamics of credit default swaps and Economic Sentiment Indicators, the study aims to determine which one is a better predictor of financial crises. The research focuses on data from 28 European countries from 2007 to 2015 to understand the relationship between credit risk and economic sentiment.