A Research Of European Debt Crisis Rescue And The Inspiration For Chinese Local Government Debt

The European sovereign debt crisis, which started in2009, cast a cloud over thewhole world economy after the United States subprime mortgage crisis, including thefast-growing China. Saving the crisis has become a common task for nations, sincemassive legislation reform and economic problems appeared from the RegionalEconomic Integration Organization.EMU is a treaty-based organization which consuming decades of effort fromEuropean countries. However, the defect of system and the unbalance of nation’seconomy lead to an irreversible dilemma. Though salvation from different sides tired,including fiscal policy changing and the use of new monetary policy even thelegislation reform, hardly can the crisis been removed. What’ more, the problem ofgoverning national finance independently has also impeded the salvation. When wereflect China, local government debt has become serious and more and more Chinesestart thinking the similar crisis problem. Some Chinese asked if the age of “Chinesedebt crisis” has appeared. Even the distinct difference between two parts, the reasonswhich containing the invalidation of financial budget and imperfection of system weresimilar. A research of slaving the European debt crisis can support a legal advise forChinese local government debt.This thesis discusses from the development of EMU and the reason of crisis,examining the saving ways and effect and supporting some advises for Chinese salvation of local government debt. There are five chapters in this thesis. Chapter Ⅰis the background of the crisis, which stating the development and pointing the deflectof Euro system. Chapter Ⅱ is the emphasis of whole thesis which introducing thelegal impediment of saving measures. In this part, the salvation bond from EMU andmonetary policy were discussed sufficiently. Chapter Ⅲ discusses the integration ofEuro and the relationship of Euro and European crisis. Chapter Ⅳ and Chapter Ⅴ aretalking about the current status of Chinese local government debt and the differencewith European crisis. Through this chapter and the whole thesis, advises were putforward for the governing of Chinese local government debts.