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Public Debt Sustainability in E.U

Author

Listed:
  • Corina-Florentina Scarlat (Mihai)

    (University of Craiova, Romania)

Abstract

The topic of public debt sustainability is an important one, and the rapid increase of public debt for the E.U. countries following the Covid-19 pandemic raised the importance of this topic. In the article, we analyzed the way in which the economic growth and the public budget deficit influence the public debt for the E.U. states. A multifactor regression model based on panel data was used, and the result indicated that there is a valid relationship between these variables, and this suggests a certain form of sustainability of public finances and public debt for these states. Therefore, there is a negative relationship between economic growth and public debt and there is a positive relationship between public budget deficit and public debt.

Suggested Citation

  • Corina-Florentina Scarlat (Mihai), 2022. "Public Debt Sustainability in E.U," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 429-439, Decembrie.
    • Handle: RePEc:ovi:oviste:v:xxii:y:2022:i:2:p:429-439
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    References listed on IDEAS

    as
    1. Hernán Ricardo Briceño & Javier Perote, 2020. "Determinants of the Public Debt in the Eurozone and Its Sustainability Amid the Covid-19 Pandemic," Sustainability, MDPI, vol. 12(16), pages 1-29, August.
    2. Stephanie Pamies & Adriana Reut, 2020. "Assessing public debt sustainability: some insights from an EU perspective into an inexorable question," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 19(1), pages 27-43, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public debt; sustainable debt; cointegration; Covid-19; European Union;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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