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Over public indebtedness: what way forward??

Day 3 Morning

Friday 10 September

Room :

Plenary Room 1


Sylvie Goulard
Second Deputy Governor - Banque de France
Public Authorities
Declan Costello
Deputy Director-General, DG ECFIN - European Commission
Mahmood Pradhan
Deputy Director, European Department - International Monetary Fund (IMF)
Gediminas Šimkus
Chairman of the Board - Bank of Lithuania
Industry Representatives
Marie Diron
Managing Director, Sovereign Risk - Moody's Investors Service
Jukka Vesala
Head of Group Credit Risk Control and Model Validation - Nordea Bank Abp
Other stakeholder & experts
Jean-Jacques Bonnaud
Treasurer Eurofi - EUROFI
Jacques de Larosière
Former President - EUROFI

Global public debt in advanced economies has grown by 30% between 2007 and 2019, according to the World Bank. In the euro area, the aggregate government debt-to-GDP ratio in the same period rose from 65,9 % to 85,9% – one-third more debt compared to the pre-crisis level. Except for very few countries, the fiscal rules of the SGP have not been obeyed.

The economic consequences of the current Covid-19 crisis are worsening the situation and increasing the heterogeneity of fiscal performance across euro area member states. 

In such a context, the objective if this session is to discuss the appropriate policy mix in the euro area and to assess the main elements of the reform of the Stability and Growth Pact.

Points of discussion

How should monetary and fiscal policies address the very high levels of public debt in Europe?

What should be the main elements of a reform of the Stability and Growth Pact?