From Fiscal rescue to global debt (2010:7epa)

There have been large increases in budget deficits throughout the EU, leading to considerable rises in the stock of public debt as a percentage of GDP. The costs of maintaining high debt levels should not exaggerated. However, they may grow in the near future as interest rates are likely to rise. In addition, if public debt appears increasingly risky to the market, higher risk premia will be charged. Therefore, government must define credible strategies to reduce deficits. This European policy analysis discusses different debt consolidation strategies that will not hamper the economy but support current stimuli.

More information about the EEAG is available here. 

The analysis is part of the research project Long-term effects of the economic crisis and was presented at the seminar The European Economy in Focus.

Från finanspolitiska räddningspaket till global skuldsättning (2010:7epa)

European Economic Advisory Group at CESifo (EEAG) consists of eight internationally renowned economists who annualy publishes the EEAG Report On The European Economy. The text of this European Policy Analysis is a translated and edited version of Chapter 3 of the EEAG report of 2010.