The European Debt Crisis And Its Impact On The World Economy

The Greek debt crisis broke out in December2009, and then the debt crisis in Ireland, Portugal, soon became the European debt crisis. The European debt crisis is not only to the euro zone and even the world economic recovery brings negative effect, to become one of the focus of the world.Therefore, a study of the causes of European debt crisis, as well as the influence on the world economy, has important theoretical significance and practical significance.In this paper, based on the theory of international economics, the European debt crisis of evolution process as the breakthrough point, analysis the cause of the euro zone’s debt crisis.Then analyzed the influence of European debt crisis on the world economy. Rome is not build in one day, the European debt crisis despite the external factors, but the European debt crisis countries have domestic economic problems, and the problems within The EU. They are the major cause of the euro zone’s debt crisis. The European debt crisis countries a serious problem of an aging population, and implements the generous welfare system, forcing the government spending through debt solutions.At the same time, because of the euro zone countries economic development imbalance, unreasonable economic structure, make the government debt is piling up. From The EU integration organization perspective, the euro area exist system defects. It’s lack of crisis prevention mechanism, supervision mechanism, and exit mechanism. The EU as a important sector of the world economy, its debt crisis through trade channels, the financial channels and the expected transmission mechanism, brought negative influence to the world economy. The European Union is the only high levels of economic integration organizations. Problems in the process of EU integration and in the euro zone’s debt crisis shows the existing problems both for have implications to the development of economic integration and the development of the world economy. In particular, the transformation of the pattern of economic development and the internationalisation of the RMB has certain reference significance.