European Sovereign-debt Crisis: Reason Affect And Inspiration

Sovereign debt refer to a nation on it’s sovereignty credit honour to other sovereigncountries or international organizations to raise a loan. If a country cannot fulfill debt serviceobligations in time, there is a risk of default, and it will face a sovereign state debt crisis. In2009, sovereign debt crisis originated in Greece, and spread to the euro zone countries is thissituation. In October2009, the Greek government, released its fiscal deficits and public debtto GDP ratio. The figures are over the international recognition limit.Than the default risksharp, the rating cut, the financing cost rised. Greek debt crisis outbreaks. Market panicspread, other countries in the euro zone affected by financial condition. Italy, Ireland,Portugal and Spain’s sovereign debt has surfaced the whole of the European sovereign debtcrisis intensified.This paper first presents the European sovereign debt crisis and the evolution process,then discuss the incentive,such as the euro zone own system defect, the economic structure ofand population structure of euro zone members. Since the European sovereign debt crisis isstill on the evolution process, and our country closely related with the euro zone, so the fourthchapter mainly expounds European sovereign debt crisis influence on euro zone and ourcountry, on the RMB and foreign exchange reserves. This crisis is also an opportunity, inchapter5chose some important and urgent enlightenment to discuss to try to enhance ourcountry economic strength. Hope to give every little helps on local government debt,economic structure reform and economic stimulus implement.