General government debt of European Union countries during the COVID-19 pandemic period
DOI:
https://doi.org/10.15584/nsawg.2023.1.2Keywords:
general government debt, causes of debt, debt overhang hypothesisAbstract
As a result of the crisis caused by the COVID-19 pandemic, the public debt of the European Union countries grew rapidly. The immediate cause was huge budget deficits, rooted in the restrictions introduced in individual countries on economic life and financial aid from states to the most affected branches. In the near future, further increases in debt are likely to be expected, which
will be driven to a significant extent by the incurring of new financial obligations to rebuild the economies of EU countries after the crisis.
The purpose of the study is to present the changes in the size of public debt under the COVID-19 pandemic and to identify the implications of its rapid growth. In addition to the analysis of statistical data, attention was focused on the causes of the build-up, the Next Generation EU economic recovery program and the impact of debt on economic growth. The main thesis of the work proclaims that the coronavirus crisis caused a significant increase in debt in the European Union countries. In order to realize the purpose of the work presented above and to argue the thesis, a research method known as comparative descriptive analysis was used.
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