Reducing sovereign debt levels in the post-Covid Eurozone with a simple deficit rule
Research Area: | Fiscal Policy |
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Researcher: |
Thomas Jost, Karl-Heinz Tödter |
Date: |
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Abstract: |
Debt levels in the eurozone have reached new record highs. The member countries have tried to cushion the economic consequences of the corona pandemic with a massive increase in government spending. There are various calls to abolish or soften the Maastricht rules of limiting sovereign debt. The authors see the risk of a new sovereign debt crisis in this decade if it is not possible to bring public debt down to an acceptable level. |
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