The Influence Mechanism Research On Financial Pressure To Sovereign Credit Risk Of The Euro Zone

Since2009, the central government financial pressure and national sovereigntycredit become the focus of attention while the European Union nations outbreaks ofsovereignty debt crisis. At the same time, the central government debt of the EuroAmerican developed countries and the developing countries was the hot-point questiondiscussed by scholars for a long time. But at present, most of domestic researchliterature about debt crisis belong to macro discuss, few of them belong to empiricaltest based on data and model. So, what exactly one country’s financial pressure fromthe actual economic level is how to form? How the financial pressure transmits to thesovereign credit risk? This is the main problem this paper wants to explore.This article starts from understanding and grasping the theoretical basis and theconnotation of sovereign credit risk and financial pressure, detailed describes therealistic situation of financial pressure and sovereign credit risk of the major countriesin euro zone, and carries out the empirical test with panel data fixed effects regressionanalysis and points digits regression analysis according to the impact factors of thenational bond yields by using17countries’ macro economic data of the euro zone from2000to2009. The empirical test shows that the debt rate、public expenditure、debt ofthe central government、the degree of aging population and the rate of young men toelders are the important indicators of the national bond yields, but finance related rateand capital market size which reflects a country’s virtual economic development arenot obvious indicators of the national bond yields. Finally, the article puts forwardappropriate policy recommendations on China’s economy running smoothly andsustainable development based on the empirical findings and the current developmentstatus of the European debt crisis.