Causes And Effects Of European Debt Crisis With China’s Response

European debt crisis have occured with attention of all over the world,itconstantly affects the whole world nerve all the time.A lot of problems comes oneafter another,such as Weak economic growth, Global trade protectionism, the declinein exports, the financial turmoil, the unemployment rate increase etc. It not only hitthe European developed capitalist countries, but also to the whole world economicrecovery buried worries. Therefore it is necessary to cause and effect of Europeandebt crisis to do systematic research and analysis to give suggestions for China’sresponse.This paper is divided into five parts. The first part is the introduction, it mainlyintroduces the research background and research significance.The second part is theliterature review,it mainly introduces some research results on the debt crisis of thescholars. The third part is the analysis of the causes of European debt crisis,includingthe direct reason analysis and root cause analysis. The direct reasons mainly includethe influence of external international environment, the euro zone system defects,social welfare analysis of countries in the euro zone,rescue mechanism andeconomic variety of euro zone countries. The root cause analysis The essentialreason is to analysis European debt crisis from the perspective of the Marx doctrineand the capitalist basic contradiction. The fourth part is the analysis of the effect ofEurope debt crisis,including the effect of Europe itself, the impact on internationaltrade and the impact of global financial markets. The fifth part is the China’s response,it mainly introduces how to deal with European debt crisis presently for China and itsproblems in the development process especially the precautions against the risk.In this paper, we systematically analysis the causes and effects of European debt crisis with methods of theory with practice and the Marxism,and know the positivelessons and enlightenment of European debt crisis as to give suggestions fordevelopment of China’s economic and society.