European Debt Crisis:It’s Causes, Hazards And Warning

The European debt crisis is the largest event since the EU was established, and the most difficult dilemma since the single currency system of the euro zone was established. The crisis isn’t only tremendous impact in economic, political, social, ideological field of the euro zone’s and also have a negative impact on other countries as well as global, forcing countries to reexamine the problem of government debt.Fully understand the reasons for the debt crisis helps countries as soon as possible verification of its own debt risk potential, do preventive work in a timely manner. The author departure of the analysis of the problem two angles:First, from a practical perspective, there are defects about economic system, political system, industrial structure and rescue system in the euro zone countries that lead to debt risks continue to accumulate, eventually detonating the sovereign debt crisis. Second, from a theoretical point of view, the EU established the theoretical basis for regional economy theory, the theoretical basis for the creation of the euro area monetary theory, the two theories inherently tied to the debt crisis.What harms the debt crisis in Europe? The author firstly discusses the chaos of the euro area: the increasingly serious problem of unemployment of the Member States, the overall economic downward trend, increasing social conflicts, crisis countries of the frequent turnover of political power, and even the status of the euro has also been shaken; Secondly, the European debt the impact of the crisis on the United State, the United Kingdom and China; Thirdly, conclude with a summary of the impact of the European debt crisis on the global.European debt crisis caused such serious consequences, has an extremely important warning to other countries in terms of warning for our country, mainly in the following two points:First, the European debt crisis warns that China government must be careful to implement the social security system. The fact that the European debt crisis has exposed high-welfare system is a double-edged sword, has advantages and disadvantages, which also reflects efforts to the implementation of the social security system slightly unfit are likely to lead to serious consequences. Therefore, our country must implement more reasonable social security system according to national conditions, the economic basis. Second, the European debt crisis warns that the Chinese government should attach great importance to the local government debt issues. In China, the local government debt occupies a large proportion, and there are many similarities between the European debt crisis and local government debt. So oer government must strengthen risk prevention, the author has put forward relevant proposals. Third, the European debt crisis warning to China to optimize the economic structure, the economic structure is irrational isn’t only one of the root causes of the debt crisis, China’s debt and increased risk of potential factors, attention should be paid.