PUBLIC DEBT IN THE EU COUNTRIES

• Published in: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Main Author: HARALAMBIE GEORGE ALIN
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2015-06-01
• Subjects: public debt; budget deficit; GDP; economic recession
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2015-03%20Special/47_Haralambie.pdf

This article made a detailed study on the debt situation of the countries from EU and Romania default. The economic crisis which began in 2007, with major repercussions in social life, led to the inability of governments to implement their goals before the snap. Countries in Europe there were also deadlocked facing substantial budget deficits and public debt increased by default. To cover them, in a first phase, governments have opted for borrowing on domestic and foreign capital, at the expense of adopting austerity measures that aim to reduce spending and increase tax revenues in order to increase the budget purchased, which had aroused discontent among their countries citizens. Populist measures taken had the effect of economies entering a downward spiral, which eventually led to their inability to meet its obligations arising from loans, which resulted in drastic reduction in spending and increase tax burden. In this context, particulary volatile, budgets of EU countries were built by adopting austerity measures which aimed at reducing budgetary allocations. The sovereign debt crisis has led to rethinking strategies to reduce fiscal deficits and reduce arrears.