Analysis of public debt in the European Union - issues related to its sustainability

Information
Title: Analysis of public debt in the European Union - issues related to its sustainability
Issue: Vol. 7, No 2, 2014
Published date: 20-09-2014 (print) / 20-09-2014 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Diana Marieta Mihaiu
Keywords: public debt, public investment, unemployment, GDP growth.
DOI: 10.14254/2071-8330.2014/7-2/2
DOAJ: https://doaj.org/article/562f36af55ca457da1b16ac271f3224a
Language: English
Pages: 25-32 (8)
JEL classification: H63
Website: http://www.jois.eu/files/Vol_7_2_Mihaiu.pdf
File https://www.jois.eu/files/Vol_7_2_Mihaiu.pdf
Abstract

The purpose of this paper is to analyze the public debt in the EU member countries based on the “golden rule” of state indebtedness. This study analyzes the type of relationships that exist in the European Union (EU27) in the period 2008-2012, between the level of the public debt and: public investments, unemployment rate and economic growth in order to identify the destinations and effects of the public debt that represent pillars in the analysis of its sustainability. The analysis revealed an inverse relationship between public debt and public investments, thus increasing the public debt is not listed in stimulating public investments, but on the contrary it can be noticed their decline.