The Greek Debt Crisis

After the devastating European financial crisis in 2008, the eurozone countries began to worry about what they thought impossible, the eurozone collapsed. Following the turning point of rapid recovery hopeless, European leaders expected that the recovery process will take longer than expected. Members of the euro zone, Portugal, Ireland, Greece and Spain have received the greatest hit of the financial crisis, Greece is undoubtedly in the worst economic situation. As a result of the collapse, Greece can condemn its poor economic situation in its reckless deficit spending, poor fiscal policy and weak national institutions.

The financial crisis and the Greek sovereign debt crisis accelerated the innovation and construction of the EU financial regulation system. This report analyzes the causes of Greek sovereign debt crisis based on domestic factors, international factors and EU factors. In addition, it explains in detail the construction of EU financial regulation system based on macro and micro level. At the macro level there is a European Systemic Risk Committee and at the micro level there is a European secondary financial regulation system consisting of the EU and Member States. The EU also has emergency mechanisms such as the European financial stability mechanism and European financial stability mechanism in stages and is linked to various regulatory measures. The Greek crisis and the emergency measures and institutional measures initiated by the European Union provide lessons and lessons for global response to the global financial crisis.

Greece 's debt crisis The New York economic crisis in 2008 brought a ripple effect to the world and serious structural problems within the EU weakened the economies of several countries. These countries, called PIGS, are comprised of Portugal, Ireland, Greece and Spain and share most of the EU 's sovereign debt problems. After the rapid growth of the beginning of the decade these countries used too much money and did not guarantee their own banking business.

Due to the global financial crisis of 2008, the major countries of the OECD implemented economic stimulus measures, raised the public debt level, and exacerbated the fiscal situation. This also led to a debt crisis in the euro area and a Greek debt crisis. Europe's debt crisis was a multi-year debt crisis in several euro area countries as of the end of 2009. It is characterized by an environment that the government's structural deficit is large and the debt level is accelerating. In January 2008, the bank faced a loss of 4.9 billion euros (equivalent to $ 2 billion) due to fraud trade by a single trader in the future. It is reported that future traders are planning a series of fraudulent transactions that were out of control in the unstable market in 2007 and early 2008. As a result, the two rating agencies reduced the bank's long-term debt rating from AA to AA- (Fitch) and Aa 1 / B Aa 2 / B- (Moody).