'The construction of financial supervision system under Greek debt crisis Essay\r'

' instauration\r\nThe monetary crisis and the Hellenic monarch debt crisis have speed the construct and social social organise of EU pecuniary direction remains. This report is analyzing the cause of Grecian self-governing debt crisis on the basis of the domestic factors, the international factors and EU factors. Moreover, it illustrates the construction of pecuniary restrictive system of EU found on the take of macro and little. The macro level has a European systemic risk council; the little level has a secondary European monetary restrictive system which is constituted by EU and atom pronounces. The EU as well as has emergency prick on the stage, such as, The European fiscal stabilisation mechanism and The European financial constancy adeptness and associated with a series of regulatory measures. The emergency instrument and institutional measures launched by The Greek crisis and the European joint have provided have got and lessons for worldwide in rejoinder to the global financial crisis around the world.\r\nCauses\r\nThe Greek parsimoniousness was one of the fastest growing in the euro district during the 2000s. The government of Greece run large shortfall(a)s due to a strong economy and falling bond yield. Debt to gross domestic product has remained above 100% since the introduction of the EURO. The global financial crisis in 2008 calls the Greek economy suffer a severe setback and the global financial crisis reveals its wispy financial business office from two aspects. First, the economy structure of Greece is relatively single, which means the growth of its economy is instable. Second, the debt enthronization strategies of National Bank have produces a colossal burden to the Greek economy. However, the global financial crisis b bely pushed the exposing of the financial occupation of Greece and the country overspent and failed to tell to the European marriage ceremony the actual size of its ballooning deficit ar e the pristine cause. Furthermore, the European northward to a fault did non review the figures sent in by Athens properly.\r\nLong term solutions\r\nThe Greek sovereign debt crisis stimulated the process of the form of EU financial regulatory system. The explosion of U.S. financial crisis has made Europeans regard that the European financial regulatory did not live with the market integration process. The leaders of European Union have made significant strategies for ensuring fiscal stability in the long term. Currently, in order to eliminate a possible domino effect caused by Greek crisis and to avoid a weak euro, the member state of the European Union, on the one hand, adopt that the Greece itself must cut expense on a wide range, on the other hand, the member state ask to speed the mend of EU financial market up and strengthen the financial regulatory system on the level of European Union and its members. In order to establish financial regulatory system and its associa ted measures, there are three primary aspects to focus on: first, the financial regulation of the EU members, strictly control and limit the problem of debt overweight. Second, it is obligatory to strengthen financial supervision to prevent the guessing by speculators. Third, it is crucial to solve the institutional structure problem of Euro itself. These three must collaborate and parley with each other.\r\nFinancial regulatory institution\r\nIn order to strengthen European financial regulatory reform, the EU commission proposed to establish â€Å"European systemic Risk Council” on the macro level and â€Å"European System of Financial Supervision” on the micro level. The main responsibilities are: establishing regulatory policy at the macro level and conveying to European regulatory bureau or providing early stage risk warning; to compare the observation of the development of macrostinting and to propose dominant policy in tot up to the change of the supervision. For instance, responsible for collecting、 analysing financial stability information, publishing risk warning, to take overall regional action when one country has encountered difficulty and hardly band with it. It aim to solve a major(ip) drawback which is exposed by the financial crisis, the financial system is helpless when the systematic risk is complex, associated and between subdivision and cross †department.\r\nEmergency system in cast\r\nIn order to solve the Greek crisis, the EU and its members use emergency relief instrument to dole out debt crisis. The main emergency systems in stage are: establishing â€Å"European Financial Stabilisation Mechanism” and â€Å"European Financial Stability Facility”. Above all, all the instruments and measures are to ensure that the union is able to dispense with the debt crisis and also to ensure such crisis will not happen in the future.\r\nMy comments\r\nI would like to make a comment on the European proble m of the Greek crisis. It seems that the Greek government is unable to deal with its budget and is incapable to reduce public spending and increase tax revenues. Since the introduction of the EURO, the financial situation is worsened every year. In my opinion, as Greek crisis has become a European one, i do believe Europe is taking fundamental economic reforms which are necessary to copy with the imbalance of the Greek financial crisis.\r\nConclusion\r\nAs mentioned above, the Greek crisis and the institutional measures introduced by the EU have provided significant experience for worldwide in dealing with the global financial crisis. First, all crisis has its latency and incentives, it is important to prevent the etymon in order to prevent the financial crisis and the sovereign debt crisis. Second, the financial crisis and the sovereign debt crisis have brought an opportunity to the reform of the world monetary system and the financial system, it also a challenge for the leading p osition of US dollar. From the development of the European integration process, each crisis has pushed the innovation and improvement of the system of EU in the past tense and lead to European integration ultimately. The development of the European integration could say that is a process of overcoming the crisis evermore and innovation of system continuously.\r\nReferences\r\nAntonis Antoniadis, 2010. Debt Crisis as a orbiculate Emergency: The European Economic Constitution and opposite Greek Fables Dell’Ariccia, Giovanni & Detragiache, Enrica & Rajan, Raghuram, 2008. â€Å"The touchable effect of banking crises,” Matthew Lynn, 2010. Bust: Greece, the Euro and the Sovereign Debt Crisis Martin Feldstein, 2011. Greek evasion is just a matter of when, not\r\nif. In: Financial Times. (24.06.11)\r\n'