Influence of the financial regulatory system on European sovereign debt crisis

Abstract

European sovereign debt crisis is a big challenge not only for Europe but also for the whole world. In this paper, first I will give an introduction about European sovereign debt crisis, then analyze the cause of this debt crisis. In the discussion part, I will analyze some problems of the financial regulatory system such as bureaucracy, inadequate regulation, the uncertainty of regulatory integration and synergy, which is smaller than the countries have planned, which are parts of the cause of the crisis. After that I will analyze the problems of the financial regulatory system, there are some ideas and suggestions for the financial regulatory system in this part. The last part of the article is the conclusion. Countries in Europe are very closely associated with each other. After the breakout of the debt crisis, European countries should build a more stable finance system which can support euro to compete with dollar in the international monetary system. It is good for countries all over the world if euro could break the dominance of the dollar monopoly.