Joining in the euro area and using one common currency unit formed a single market for capital,

goods, labor and help transactions easily and convenient. It also helps countries in the region to take advantage of available resources for development. Moreover, the launch of the euro has created a big change in the world monetary system. Besides, due to the European Central Bank (ECB), inflation rates has been kept at a reasonable level and contributed to stabilize prices in the economy. However, especially the global financial crisis exploded in 2008, the European economy constantly faced with many difficulties such as high inflation that made it become complex. Many European countries had to fight to prevent this financial crisis. It caused the severe impacts and wiped out achievements that EU gained in many years. This problem starts from the government debt. For years, banks and bank managers see this debt without risk. The central government of the European countries always appreciated the role of their obligations in speculation. With this belief, the bonds pay lower interest rates and sell at a price higher than the price of them if they are seen as reliable credit risk. Though, participants in the financial markets began to doubt the optimism belief of the government in Europe. This problem started from Greece. Greeces crisis In there, Greece is the special country which still has difficulty in paying debts and almost lost the ability to control the budget deficit. European policy makers concerns that problems in the Greece would influence throughout Europe. Many European banks are holding Greek debt as their properties. When the value of Greek debt falls, banks could not repay that debt. The insolvency of Greece could push many banks into the end, and make the crisis widespread. Greece stands on the brink of bankruptcy due to the indiscriminate spending policies. Countrys budget deficits reached 13.6% and the debt was approximately 120%. The interest of Government bonds raise from 1.78% in July, 2009 to 12.27% in January, 2011 and peaked 110.78% in November, 2011. The risk of inability to pay and led to the chain collapse of related financial institutions are major concerns that make the global financial market instable.

Specially, when the new prime minister of Greece George A. Papandreou announced that his predecessor had concealed the giant budget deficits which this country was facing. The government budget deficit of this country was 12.7% GDP, not 3.7% as the forecast before. The public debt reached 300 billion Euros (approximately 125 % GDP accounted 4 % of the total debt in the euro area). As the result, many investors were shocked about this problem. In early 2010, fears about the potential loss of payments in Greece became into the financial panic when investors doubted about the ability of the Greek government in the implementation of tough measures as commitment to reduce the budget deficits. When this fear spread to Portugal and Spain, the leader of countries which has important influences, for instance, Germany and France were worried about the lasting harm of it against the euro. Those countries committed to protect the regions currency but refused a bailout package for Greece immediately. Furthermore, in April 2010, Standard & Poor's and Moodys reduced the rating of Greek bond down, which suggests the credit risk situation is extremely bad. After many arguments, countries using the European common currency agreed a safe solution for Greece. Therefore, Greece could receive loans from International Monetary Fund (IMF) and other European members in May, 2010. This country would have a financial support of 110 billion Euros with 5% of interest rate. In exchange, the Greek government has to meet commitments to cut debts in the next three years and implemented contractionary policy. Hence, Greek Government had a plan to reduce the spending included cutting budget in health care, wages and raising taxes. Those difficult methods made people having angry reactions with rallies. It could also make the economy and society more worsen. In short, Greece has received 2 international bailouts. The first is designed in 2010 but failed. Shortly thereafter, the international creditor gave the second bailout for Greece was 130 billion Euros. Although it received billions in aid, Greece is still face deeply in recession lasted 6 years.