Awareness Campaign. Explaining the mechanism of sovereign debt in EU countries

Sovereign debt servicing is one of the largest cost items in the budgets of EU countries. In 2010 the situation around Greek sovereign debt turned into a real stress test both for the eurozone and EU itself. Amid the crisis there were even calls for Greece to leave the eurozone and bleak forecasts predicting crush of the Euro. The European Union has survived once again proving its flexibility and 8 years after on August 20th 2018 the bail-out program for Greece came to an end. Costing around 400 billion euros saving Greek economy resulted in imposing austerity measures and exacerbated social problems in the country. How does sovereign debt system work in other European countries and what economic parameters does sovereign debt impact the most? This is what our correspondent explores in “Awareness Campaign” column

Continue reading (russian)