OECD Economic Surveys: Euro Area 2010
Hide / Show Abstract

OECD Economic Surveys: Euro Area 2010

The 2010 edition of OECD's periodic review of the Euro area economy.  This edition includes chapters covering exiting from the crisis, resolving unsustainable imbalances, rebuilding public finances and fiscal discipline and minimising risks from imbalances in European banking.
Publication Date :
13 Dec 2010
DOI :
10.1787/eco_surveys-euz-2010-en
 
Chapter
 

Rebuilding the public finances and fiscal discipline You do not have access to this content

Authors:
OECD
Pages :
87–120
DOI :
10.1787/eco_surveys-euz-2010-6-en

Hide / Show Abstract

The public finances are in poor shape following the crisis. There has been a large increase in government borrowing as a result of the operation of automatic stabilisers and discretionary fiscal stimulus. High government borrowing also reflects the end of buoyant revenues, related to the credit cycle, used to finance unsustainable spending increases. Support to the financial system has increased government liabilities in some countries, adding to already high overall debt levels. Credit spreads for many governments have widened substantially and confidence is fragile. Budgetary pressures have been particularly severe for countries unwinding excessive private or public borrowing.
Also available in: French