The US Financial Hegemony And European Sovereign Debt Crisis

It is not until the EU made joint efforts that the euro zone has been gradually emerging from the crisis which began in2009. Also, European integration seems to be on a fast and right track. The European debt crisis had its special reasons, such as the internal guidelines and mechanism. However, it actually resulted from a combination of complex factors. The thesis will analyze the direct impact on the European economies from the perspective of US economic hegemony, formulating its role in the very issue.The US as the world’s only superpower, has developed multi-faceted, multi-field, multi-level American hegemony. Economic hegemony is the main form of American hegemony and the important means to maintain the state. As the largest world economy, the US has created the huge advantage in the global financial field. However, with the fast growth of EU. the process of European integration also develops in depth and breadth, which has lead to the euro. All this above puts the pressure on the US, especially the status of US dollar in the financial field. The US has to adjust the original strategy, building some constraints and obstacles to the process of European integration at the strategic and practical level. During the period of the debt crisis, a whole variety of measures taken by the US has reflected the strategy intent.The thesis first analyzes the formation and mechanism of American economic hegemony, stating the thought and practice from theoretical and practical perspectives. Also, we talk about the birth of European integration and Euro and explain the challenges for the US economic hegemony. Next, we are trying finding out the underlying reasons like some American factors, discussing the gains and losses of American strategic interests, eventually predicting the trend of European integration and American hegemony in the post debt crisis era.The thesis argues that the impact of EU debt crisis on European integration is temporary, but also a chance for EU countries to identify and correct the problems to have the depth of integration in the long run. Meanwhile, the decline of US hegemony is an inevitable historical trend, just in face of the challenges of Euro zone and some more emerging market countries.At last, we got some thoughts on China’s financial security from the very EU debt crisis. China should avoid high welfare model, maintain the independence of monetary policy and put more emphasis on government debt. Only by doing these can we push forward the internationalization of RMB, integrate with global financial system and set up the strong economic status to take global economic responsibility and realize China dream in the global financial sector.