Governance Fiscale E Sostenibilità Del Debito Pubblico (The Sustainability of Public Debt in the European Union)

Moneta e Credito, 73 (292): 385-395, 2020

Posted: 19 Apr 2021

See all articles by Bianca Giannini

Bianca Giannini

Ministry of Economy and Finance, Italy

Chiara Oldani

University of Viterbo Dept of Economics and Engineering; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

Date Written: December 18, 2020

Abstract

Italian Abstract: L’indebitamento e la sua sostenibilità sono elementi cruciali per determinare la solidità delle finanze pubbliche, ma la risposta alla domanda “quanto debito dovrebbe emettere il settore dell’amministrazione pubblica” non è univoca. La sostenibilità del debito è un obiettivo primario nel processo di integrazione europea e Sylos Labini nel “Manifesto” evidenziava le conseguenze di un debito pubblico elevato. Il forte legame tra il problema della sostenibilità del debito e la necessità di stimolare la domanda, oltre che l’offerta, per evitare il diffondersi di disoccupazione e disuguaglianze rimane di estrema attualità. Un aspetto rilevante delle azioni correttive intraprese dai governi è il livellamento dei costi finanziari del debito e lo spostamento di parte del debito in avanti, attraverso l’utilizzo di strumenti finanziari derivati, come gli swap. Con il presente contributo, colmiamo la lacuna nel dibattito di policy, muovendo dal contributo al tema della sostenibilità del debito di Sylos Labini per attualizzarlo alle sfide poste dalla finanziarizzazione.

English Abstract: Debt capacity and debt sustainability are crucial elements in determining the soundness of public finances, but the answer to the question "how much debt should the government sector issue" is not unique. Sylos Labini (1948) is one of the first contributions to the development of an analytical reference framework to assess the "ability to repay" the debt of governments over time. Furthermore, debt sustainability represented a primary objective in the process of European integration and adoption of the euro, and already in the "Manifesto" the consequences of a high public debt on the economy were highlighted where it was emphasized as "the contraction of public investments it is particularly strongly felt because of the huge public debt existing in many European countries and because of the consequent limitations on the public deficit imposed by the Maastricht parameters ”(Modigliani et al., 1998). The strong link between the problem of debt sustainability and the need to stimulate demand, as well as supply, to avoid the spread of unemployment and economic and social inequalities in Europe - present in Sylos Labini's "Manifesto" - is still present today. An important aspect of the corrective actions undertaken by European Governemnts was the leveling of the financial costs of the debt and the shifting of part of the debt forward, through the use of financial derivative instruments, such as interest rate swaps (IRS). With this contribution, we aim to fill this gap in the policy debate by moving from Sylos Labini's contribution to the theme of debt sustainability to actualize it to the challenges posed by the financialization of European states.

Keywords: debito pubblico, finanziarizzazione, sostenibilità, swap, Unione Europea

JEL Classification: E612, G23, H63

Suggested Citation

Giannini, Bianca and Oldani, Chiara, Governance Fiscale E Sostenibilità Del Debito Pubblico (The Sustainability of Public Debt in the European Union) (December 18, 2020). Moneta e Credito, 73 (292): 385-395, 2020, Available at SSRN: https://ssrn.com/abstract=3806392

Bianca Giannini

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Chiara Oldani (Contact Author)

University of Viterbo Dept of Economics and Engineering ( email )

Via Palmanova
Viterbo, 00110
Italy

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

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