This is a chain reaction

First, there is a serious sovereign debt crisis in Greece. Because Greece's current debt is far higher than its tolerance, it leads to the danger of sovereign debt. As a member of the European Union and a country in the euro zone, Greece's serious sovereign debt crisis is bound to affect the whole euro zone.

Second, Greece mainly borrows from Europe, especially the euro zone countries. Due to the huge debt, once Greece is threatened by sovereign debt and then defaults on sovereign debt such as Argentina and Dubai, the interests of relevant creditor countries are bound to suffer. As a large amount of funds are invested in Greece, the liquidity within Europe is bound to decrease, which will lead to chain effects on relevant countries.

Third, the sovereign debt crisis in Greece is largely due to the current social system in Greece. At present, under the Greek social system, social welfare remains high, and pensions, especially civil servants' pensions and related benefits are too high. In the past, Greek civil servants served for life unless they committed crimes, which is even better than China's civil service system. Moreover, civil servants have short working hours (no more than 6 hours a day), long vacation time and high pay. Correspondingly, other post pensions are also higher than other European countries. It can even be said that Greece's welfare has surpassed Germany's national economy! You know, Germany is the largest economy in the European Union and the richest country in Europe. Greece's welfare, especially the pension, follows the example of the Nordic countries. Because of its high welfare and high wages, Greece can rely on lending and tourism to support its high welfare when the world economy is good. However, after the subprime mortgage crisis and then the global financial crisis, all countries have tightened their money bags, and nationals of major developed countries have been forced to cancel many extra expenditure items, including travel, because of their reduced income. These two points are very fatal to Greece: the reduction of borrowing makes its "loan life" a bubble, and the depression of tourism makes its main economic pillar on the verge of collapse; Greece itself does not have strong industrial and commercial support like France and Germany, and its domestic demand is insufficient, so it is difficult to support its economic recovery.

Contradictions are interactive, and so are the pension and welfare issues in Greece and European sovereign debt: Greece needs a lot of money to borrow to maintain the existing situation, and the main target of help is the euro zone countries; Countries are unable to help Greece because of the debt crisis; The vicious circle that followed was: Greece needed money to tide over the crisis, revive its economy, and then maintain sovereign debt repayment; However, the major European lenders are either self-sufficient or dissatisfied with the existing Greek system and refuse to lend; Greece can't borrow money, the economy is difficult to recover, and there is no money to repay the loan; The major European lenders can't get their loans back, or they can't continue to borrow, or they refuse new loans (if they don't pay back, they won't borrow), and this cycle will eventually affect the whole of Europe.

In retrospect, why does the Greek pension problem affect sovereign debt? As moonstone said above, Greece is a country with high welfare, and its pensions, especially those for civil servants, remain high. When the economy is good, it can still support these benefits, but once the economy turns down, it will be difficult to support high welfare and high pension. There is an old saying: from frugality to luxury, from luxury to frugality. Greeks who enjoy lifelong employment, high welfare, high salary and high pension can't accept the sudden sharp decline. At first, the Greek government met the requirements of European borrowing countries by increasing revenue and reducing expenditure, that is, giving taxes and reducing public expenditure, but this harmed the vested interests of Greek nationals, so trade unions organized strikes and people demonstrated. The core of Greece's monetary tightening this time is various welfare benefits and pensions. When France revised the retirement bill, the trade union organized more than ten national strikes, but Sarkozy finally signed the bill step by step. Today, Greece has made similar reforms, but because the Greek government lacks strong means, especially the opposition refuses to reform the government, this not only makes the government difficult, but also makes people strongly dissatisfied with both the government and the opposition. Because the reform bill is difficult to promote, European creditor countries, led by Germany and France, are reluctant to continue lending to Greece, which makes the vicious circle continue and spread to the whole of Europe.