Public Debt Developments in the EU

Posted: 19 Jul 2011 Last revised: 22 Dec 2011

See all articles by Gianluca Cafiso

Gianluca Cafiso

University of Catania - Department of Economics and Business

Date Written: June 1, 2011


Following the financial crisis in 2008/09, concern on some EU countries’ public debt has continued to deepen in 2010/2011. As of May 2011, Greece, Ireland and Portugal have resorted to the joint EU-IMF’s support, and economists now acknowledge a debt crisis in the Euro Area. If at first the issue was to decide between stimulus and consolidation, now consensus seems to prevail on a quick consolidation of public finances. The objective of this report is to understand in which way the financial crisis has caused the deterioration of the debt/GDP ratio, and to assess the fiscal adjustment required for its sustainability.

Notice: This report includes a comprehensive note on Public Debt equations in Appendix II

Keywords: public debt, fiscal adjustment

JEL Classification: H6

Suggested Citation

Cafiso, Gianluca, Public Debt Developments in the EU (June 1, 2011). Available at SSRN:

Gianluca Cafiso (Contact Author)

University of Catania - Department of Economics and Business ( email )

Corso Italia 55
Catania, 95129
+39 095 7537 745 (Phone)


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