The Sovereign Debt Crisis Under The Background Of Regional Governance Crisis

Since the U.S. subprime mortgage crisis in2008, the EU economy has a slow recoveryunder the government massive economic stimulus measures and entered the―post-crisis‖period. However, European sovereign debt crisis has been gradually emerging and becomethe most obvious features of the―post-crisis‖period. The main reason of this debt crisis isthat the European government had too much debt and ca lled supervision to account afterthe crisis, but there is always―a slip through the net‖. This financial crisis has threatenednot only national and euro credit, as well as the overall framework of the EU and themonetary union system in euro area. Therefore, the European current crisis is not only anational sovereign credit crisis, but also a crisis of the regulatory governance. By thischance, the EU could construct and reform the financial supervision to ensure the stabilityof the euro and euro area. To solve this problem, this paper takes the sovereign debt crisisas the background and the euro area as example to describe the source, developmentprocess, short-term emergency measures as well as the long-term institutionalestablishment of the regional―double crisis‖. This defined―double crisis‖specificallymeans that the European debt crisis is not only a national sovereign credit crisis, as well asa governance crisis of regulatory system.This paper has divided into four chapters to discuss the regional governance: Chapter Idefines three generations of the traditional theory for currency crisis concepts anddescribes the basic content and characteristics of this theory. On this basis, it also explainsthe "dual structure" limitations of euro area. Chapter I pave the way for Chapter II; ChapterII presents the―double crisis‖in the euro area. It is mainly around the―double crisis‖theme in the euro area and takes the Greek crisis cases to illustrate the whole story of thesovereign credit crisis and its impact, as well as the follow-up governance crisis; ChapterIII describes that the EU has taken financial regulatory system as the core to carry out theshort and long term of the crisis solution and mainly analyzes the construction and reformof the EU financial regulatory system and new development and system arrangements ofthe regulatory reform after the debt crisis.