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The Guarantee Problems In European Sovereign Debt Crisis

Posted on:2013-02-03Degree:MasterType:Thesis
Country:ChinaCandidate:Y L ChenFull Text:PDF
GTID:2246330395452279Subject:Law
Abstract/Summary:PDF Full Text Request
In December2009, three International Credit Rating Organization have downgraded Greece’s sovereign debt ratings and listed it to be negative watch, then the Greek Fitch credit rating cut it from A-to BBB+and its outlook was negative. Immediately Standard Poor’s and Moody’s also announced to cut Greece’s sovereign ratings. In January2010, Moody’s warned the Portuguese Government. Credit rating of the bonds would be lowered if it failed to take effective measures to control the deficit. The European sovereign debt crisis spread officially from Iceland and Mid-east European countries to Euro-area countries. In this paper, the author tries his best to dig the deep reasons of the European sovereign debt crisis from external factors and internal factors and to indicate the outbreak of the crisis in the absence of certain legal necessity.Although the modern nation’s financial system and financial legal system has been established steadily, a country’s debt crisis is likely to become a regional and even global phenomenon in the effects of economic globalization and international economic integration, the European sovereign debt crises proved the correctness of this proposition once again. It can be seen that a country’s financial stability is related to the global financial security and economic stability. Also it helps to maintain the stability of global financial markets and promote economic development with the help of study the European legal incentives of sovereign debt crises on the basis of paying close attention to the global financial crisis and the deep reasons, thereby making it possible for all countries to get rid of troubles from sovereign debt crisis and creating conditions for further development. Therefore, international agencies and governments should work together to deal with the debt crisis in European countries and continue to improve the legal system and legal measures.This paper is divided into four parts. The first part of this paper summarizes the basic theory of sovereign debt and sovereign debt crisis and analysis the various reasons of European sovereign debt crisis with the case study of the Greek, especially from the legal point. The second part analysis the issues of government guarantee including the legal nature and legal effect. Meanwhile the author summarizes the responsibility that the government should be undertaken in the sovereign debt crisis. The third part is the legal solutions of the European sovereign debt crisis. In this paper there are three angles, namely the International Monetary Fund, the European Union and European countries. It focuses on the legal measures that they take to deal with the debt crisis and to prevent in the future. The last part transfer from abroad to the domestic perspective, the author analysis the risks that China has been assumed in the European sovereign debt crisis and measures to deal with the problem.
Keywords/Search Tags:sovereign debt crisis, government guarantee, legal measure
PDF Full Text Request
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