The Financial Crisis In The European Economic Performance, Causes And Coping Research

Under the background of globalization and financial liberalization level’s continuously raising, the 2007 -09 financial crises got contagious quickly, spread to a wide range, and caused far-reaching influence to the financial system and the real economy of each country. As the financial markets were developed, coupled with a higher mutual opening degree, the poor financial supervision and the high leverage ratio of the bank system, the impact of the financial crisis between US and Europe were aggravated. The performance review of EU economy shows that EU financial system suffered even harder than US, at the same time, after the crisis, the EU real economy also resuscitated more weakly than US and Japan, until recently, several countries such as Portugal and Spain are still in the obsessions caused by the sovereign-debt crisis.The financial crisis’s strike, the real economy’s decline and subsequent slow recovery and the European sovereign-debt crisis erupted in succession and deepened, which highlighted the imbalance among the EU member states, projected the EU economic and society’s deep-seated problems. At the same time, the defect for Euro area as a monetary union was exposed, the integration process were also affected.This paper firstly focuses on the EU economy’s performances and causes during the financial crisis, summarizes the characteristics of the crisis according to the three stages which the financial crisis affected and deepened, conducted to the real economy and initiated the sovereign-debt crisis, by consulting a large number of literature and collecting the latest data,summarizes the crisis’s features. More over, this paper sorts out the policy measures as the crisis response from two planes of EU and the member states, examines the effect of the series of policies and measures by comparing the representations of EU economy before and after the crisis. Also, this paper analyses the tendency of sovereign-debt crisis and the prospect of the EU policies.Finally, on the basis of analyzing EU and the member countries’ crisis responses,combining the actual conditions of out country, this paper discusses the inspiration China can draw from EU and member countries.