Preliminary Study On European Sovereign Debt Crisis

The Greek sovereign-debt crisis got worse and spread to other European countries such as Spain, Ireland, Portugal and Italy and other countries which had suffered the credit crisis in varying degree. A series of sovereign-debt crisis caused European economy in a vulnerable position, and there were capital flighting, money market liquidity shortages, interest rates rising,the euro devaluing and so on. As a new phenomenon in Europe, sovereign-debt crisis which staged an "affecting the situation as a whole" was worth in-depth studying.As institutional shortcomings in the eurozone, Grecian sovereign-debt crisis had a highly infectious, and eroded other European countries with high debt risk. Therefore, on the background of integration of world economy, in-depth studying of European sovereign-debt, strengthening the practice of debt management, has a very important practical significance.This thesis is committed to systematically analyse European sovereign-debt crisis. On the base of clarifying the development process ,we can reveal various reasons of the European sovereign-debt crisis. The reasons have following performance: the impact of financial crisis; institutional shortcomings in the eurozone; internal economic imbalances; adverse external factors; sandwich effect.As close internal links among eurozone countries, European sovereign-debt crisis had broad implications, and it not only hit the countries where broke out sovereign-debt crisis, but also brought a negative impact to the European Union and European financial sector. At the same time, economic globalization and international finance made such negative impact spread to worldwide. As an integral part of the world, China had been adversely affected. Facing European sovereign-debt crisis, the parties had adopted targeted measures. For example, European countries took effective measures to stop further deterioration of the crisis; EU and IMF and other organizations took practical measures; Some active assistance was provided by China. Through this measures, European sovereign-debt crisis have been kept within limits to some extent.Finally, on the base of the measures for crisis, it is necessary to summarize some lessons and inspirations especially for China which is in rapid economic development. Specifically, to prevent debt crisis, China should take following measures: adjusting economic structures to support economic growth; strengthening risk management and regulation of derivatives; strengthening building of domestic credit rating agencies; strengthening management of local debt to prevent the real estate bubbles; concerning on the safety of China's claims.