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  • The EU Fiscal Framework Under Stress Is A European Monetary Fund The Solution?

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    The document discusses the stress on the EU fiscal framework and whether a European Monetary Fund could be a solution. It includes charts showing projections that gross debt as a percentage of GDP will rise significantly in several Eurozone countries from 2011-2008. Another chart shows increases in public debt from 2008-1998 and 1998-2011 for various OECD countries. Tables show spreads on sovereign debt and the percentage of public debt held by foreign investors for various countries. It also includes a table on the required average primary balance as a percentage of GDP needed to stabilize public debt at 2007 levels over different time periods for various countries.

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    Lecture 7

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    The document discusses the stress on the EU fiscal framework and whether a European Monetary Fund could be a solution. It includes charts showing projections that gross debt as a percentage of GDP will rise significantly in several Eurozone countries from 2011-2008. Another chart shows increases in public debt from 2008-1998 and 1998-2011 for various OECD countries. Tables show spreads on sovereign debt and the percentage of public debt held by foreign investors for various countries. It also includes a table on the required average primary balance as a percentage of GDP needed to stabilize public debt at 2007 levels over different time periods for various countries.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views8 pages

    The EU Fiscal Framework Under Stress Is A European Monetary Fund The Solution?

    Uploaded by

    flyekelly
    The document discusses the stress on the EU fiscal framework and whether a European Monetary Fund could be a solution. It includes charts showing projections that gross debt as a percentage of GDP will rise significantly in several Eurozone countries from 2011-2008. Another chart shows increases in public debt from 2008-1998 and 1998-2011 for various OECD countries. Tables show spreads on sovereign debt and the percentage of public debt held by foreign investors for various countries. It also includes a table on the required average primary balance as a percentage of GDP needed to stabilize public debt at 2007 levels over different time periods for various countries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    The EU fiscal framework under stress Is a European Monetary Fund the solution?

    Charts and tables

    Fabrizio Coricelli JVI Vienna April 9, 2010

    Gross debt/GDP, projections 2011


    160,0
    140,0

    120,0

    100,0

    80,0

    60,0

    40,0

    20,0

    0,0

    Total OECD Euro area

    Increase in public debt

    United States United Kingdom

    Spain Slovak Republic


    Portugal Poland

    Italy Ireland
    2011-2008
    Hungary Greece

    2008-1998

    Germany France

    50

    40

    30

    20

    10

    -10

    -20

    -30

    -40

    Spreads on sovereign debt (CDS)


    500 400

    300

    200

    100

    -100

    Italy

    Portugal

    Ireland

    Spain

    Greece

    88

    Public debt held by foreign investors

    82

    75

    59 49 52
    55

    36

    30

    Japan

    UK

    US

    Germany

    Italy

    France

    Spain

    Greece

    Ireland

    Portugal

    Table 3 Required average primary balance to stabilize public debt to GDP ratio at 2007 level1
    over 5 years Austria France Germany Greece Ireland Italy Japan Netherlands Portugal Spain United Kingdom United States
    1

    over 10 years 2.6 4.3 3.5 2.8 5.4 3.4 6.4 3.7 -0.3 2.9 5.8 4.3

    over 20 years 1.6 2.8 2.4 1.5 2.2 2.5 4.5 2.3 -1.6 1.3 3.5 2.4

    4.7 7.3 5.5 5.4 11.8 5.1 10.1 6.7 2.2 6.1 10.6 8.1

    As a percentage of GDP.

    Sources: IMF, World Economic Outlook; OECD, Economic Outlook; authors calculations.

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