Analyzed The Effect Of The European Debt Crisis On The Euro, Based On The Greek Debt Crisis

At the end of2009, Greece’s massive debt uncovered, that shookthe European Union. The European Union was unexpected by theoutbreak of the debt crisis in Greece and spread. As a member of theEuropean Union，Greece’s sovereign credit bankruptcy may occur at anytime, in order to avoid the emergence of this situation, the EuropeanUnion have to violate the stability and development of the treaty haspartial money aid to Greece, but it failed that help Greece from the debtcrisis fundamentally. Not only reveal the Greek debt crisis the prelude ofthe European debt crisis, but also shows the problems in the operationmechanism. Greek euro as the weakest link in the operation mechanismof Greece’s debt problems, like dominoes, caused a series of chainreaction. The outbreak of the debt crisis in Greece, then across theEuropean Union into a debt crisis, the euro occupied throughout thewhole of the events. The European debt crisis is essentially the crisis ofthe euro.The important symbol of the Euro as the European Union economicintegration is the results of several generations. For the euro to gethealthy development, in the beginning of establishing the euro, Europeaneconomists carefully designed a series of rules and regulations. But theoutbreak of European debt crisis exposed the euro operation mechanism,make the design before running mechanism become porous, even let the euro is in danger of collapse.This paper will explore what impact the European debt crisis on theeuro, and what are the difficulties of the euro. Hereby put forwardcountermeasures, allow the euro to continue to maintain the globalcurrency diversification as well as the world economic health long-termdevelopment to contribute.