This paper explores the effects of European sovereign debt crisis on the euro-zone economy. European sovereign debt crisis in the financial tsunami, the European governments to reduce taxes to stimulate the economy, a substantial increase in government expenditure, government deficit and debt problems worse. The empirical results show that, by the European sovereign debt crisis, the euro-zone economy is clearly in recession, a decline in economic growth rates and rising unemployment. If the euro-zone government debt to gross domestic product has risen, the euro-zone economic growth rate will decline.