European debt crisis can be traced from the Great Recession caused by the US subprime mortgage crisis in 2007 and Lehman Brothers’ filing for bankruptcy protection in 2008. The US and European close interrelationship can be seen via the pass of Dodd-Frank Wall Street Reform and Consumer Protection Act by the US Federal Reserve System (FED) to secretly relieve European financial business. The sovereign debt crisis and financial crisis of PIIGS countries, such as Portugal, Ireland, Italy, Greece, and Spain, were engendered by the structural deficiency of the single currency and long-termed high social welfare in the Eurozone. All of these led to the 12.1% of the unemployment rate and -0.4% of GDP in the Eurozone in April 2013, affecting the economic growth of the Eurozone and contributing to the global recession.
National economic and financial debt problems often require political intervention to find solutions, while an international system is multipolar and mutually influential, creating a realistic structural linkage of international politics and economics. The occurrence of European debt crisis appears to be a problem of the Eurozone, but because of its single currency, a half-century effort integrating Europe and because of the assistance from its countries, Euro would not crash. In addition, as the US dollar is the center of global economic structure and many currency systems and logistics are priced byit, if the Eurozone crisis cannot be resolved, the crisis will severely influence the US and Chinese economic systems. Therefore, the Eurozone crisis needs helps from the US and China, and yet Europe’s self-effort is still the key. Europe needs further integrations of political and financial leagues and should even yield part of its sovereignty to establish consensus and systems to solve its problems sooner.
A crisis is a turning point. Although the Eurozone crisis does not have much progress and still awaits changes so far, the worst has gone. At the moment, the US national debts have reached sixteen trillion US dollars, which pressure has enfeebled the US; Europe needs further integration to reinforce its international status; China is the greatest debtor of the US, who always calls for the revaluation and internationalization of Renminbi (RMB) to alleviate the stress. Hence, as the Eurodebt crisis causes the restructuring of global economics, the future international currency system will likely switch from the US-dollar-centered structure to the triumvirate of the US dollars, Euro, and RMB, or other forms, all of which are worth further studies.