Speakers
Objectives
Excessive debt is a source of crisis. Examples abound, such as the European sovereign debt crisis (2011 – 2012) that would not have occurred if public debt in several EU countries had not been so high.
Even before the Covid and the energy crises, global debt was at an all-peacetime record. Indeed, the continuation of very low interest rates during the past two decades has pushed many advanced countries to implement active fiscal policies and economics agents to borrow more.
This session will assess the sovereign debt challenges in the EU. It will first focus on possible short- to medium-term public debt sustainability problems in the euro area. Then speakers will be invited to express their views on the EU and national priorities to ensure the sustainability of the debts of the most indebted eurozone countries (e.g., improvements of the Stability and Growth Pact).
Points of discussion
- Given the level of over-indebtedness of some Member States, their low potential growth, high inflation and the rise in long-term interest rates in nominal terms, are public debt sustainability problems to be feared in the short or medium term in the euro area?
- What are the European and national economic priorities to ensure the sustainability of the debts of the most indebted eurozone countries?