Debt policy implementation in EU countries: lessons for Ukraine

Ihor LYUTY, Yuliia TERES


Introduction. The implementation of debt policy in the EU countries is associated with a range of problems, in particular, rising social spending, and increasing budget deficits. In recent years, Member States have had a negative impact on the debt crisis, which is primarily due to unbridled fiscal policies of individual countries and the banking crisis.

Purpose. The article is devoted to issues of implementation of debt policy in the EU countries and the problems of overcoming the consequences of the debt crisis, which began in 2008 and extends to today. An estimation of the possibilities of using this experience in Ukraine is made considering the fact that the country is on the verge of a debt crisis.

Results. It has been determined that the sovereign debt crisis is a crisis of confidence for the EU, in particular the euro zone. This required adjusting both the socio-economic and financial policies of the EU. It can be argued that the Stability and Growth Pact did not take place and that now Europe needs to form a qualitatively new budget system that could more effectively cope with the adverse economic consequences or even the failure of a Member State to fulfill its obligations. It has been determined that one of the main items of budget expenditures of the European Union countries is government debt service costs. Public debt management, above all, is carried out through government debt securities. There is a tendency to reduce the share of shortterm public debt and increase the long-term, which provides reduction of budget expenditures for servicing public debt. In particular, in some EU countries there are strict rules that determine the conditions for external borrowing, for example, new loans should not exceed the annual amounts of debt to be repaid.

Conclusions. It has been established that a number of measures have been implemented in the EU countries to address the consequences of the debt crisis, in particular: diversification of sources of state debt financing and optimization of terms of circulation of government debt securities; fiscal consolidation; increase maturity of debt obligations and optimize the structure of the public debt portfolio. It is concluded that the measures taken by the EU countries to overcome the consequences of the debt crisis may be useful for Ukraine and, in fact, is a step-by-step guide for the presentation of crisis phenomena, taking into account positive and negative experiences.

Ключові слова

debt policy; state debt; guaranteed state debt; budget deficit; government securities

Повний текст:



Abbas, S., Akitoby, B., Andritzky, J., Berger, H., Komatsuzaki, T. and Tyson, J. (2013). Dealing with high debt in an era of low growth. Staff Discussion Note,13/07, IMF, Washington DC.

Bankowski, K. and Ferdinandusse, M. (2017). Euro area fiscal stance. Journal of International Money and Finance, 32, 809–821.

Berti, K., Salto, M., Lequien, M. (2014). An early detection index of fiscal stress for EU countries. European Economy Economic Papers, 475.

Bohn, H. (2008). The sustainability of fiscal policy in the United States. Sustainability of public debt, MIT Press, 15–49.

Buiter, W. and Rahbari, E. (2013). Why do governments default, and why don’t they default more often? Discussion Paper Series, 9492.

Checherita, C. and Rother, P. (2012). The impact of high and growing government debt on economic growth: an empirical investigation for the euro area. European Economic Review, 7, 1392–1405 (Vol. 56).

Bogdan, T. P. (2018). Stratehichne upravlinnia derzhavnym borhom v umovakh nestiikoi borhovoi pozytsii [Strategic management of public debt in conditions of unstable debt position]. Finansy Ukrainy – Finance of Ukraine, 4, 75–92 [in Ukrainian].

Yefymenko, T. I. (Ed.). (2015). Udoskonalennia upravlinnia derzhavnymy finansamy ta reformuvannia podatkovoi systemy Ukrainy [Improving public finance management and reforming Ukraine’s tax system]. Kyiv: DNNU “Akad. fin. Upravlinnia” [in Ukrainian].

Koziuk, V. V. (2002). Derzhavnyi borh v umovakh rynkovoi transformatsii ekonomiky Ukrainy [State debt in the conditions of the market transformation of the Ukrainian economy]. Ternopil : Kartblansh [in Ukrainian].

Kucher, G. V. (2015). Borhovyi mekhanizm finansuvannia derzhavnykh vytrat [Debt mechanism for financing public expenditures]. BIZNESINFORM–BUSINESSINFORM, 8, 207–214 [in Ukrainian].

Liutyi, I. O., Zrazhevska, N. V., Rozhko, O. D. (2008). Derzhavnyi kredyt ta borhova polityka Ukrainy [State credit and debt policy of Ukraine]. Kyiv : Tsentr uchbovoi literatury [in Ukrainian].

European Commission – Economic and Financial Affairs – The euro – Adopting the euro – Who can join and when? Available at :

Council regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community. Available at :

European Parliament legislative resolution on the proposal for a Council regulation on the compilation and transmission of data on the quarterly government debt (COM (2003) 761 C5-0649/2003 2003/0295 (CNS). Available at :

COUNCIL REGULATION (EC) No 1222/2004 of 28 June 2004 concerning the compilation and transmission of data on the quarterly government debt. Available at :

Michael Lewis; Terry Gross (4 October 2011). How the Financial Crisis Created a New Third World. Retrieved 7 July 2012.

Koba, Mark (13 June 2012). CNBC-Europe’s Economic Crisis-What You Need to Know. Archived from the original on 15 June 2012. Retrieved 30 January 2014.

Seth W. Feaster; Nelson D. Schwartz; Tom Kuntz (22 October 2011). It’s all connected: A spectators guide to the euro crisis». The New York Times. New York : Retrieved 14 May 2012.

George Matlock (16 February 2010). Peripheral euro zone government bond spreads widen. Reuters. Retrieved 28 April 2010.

Acropolis now. The Economist (29 April 2010). Retrieved 22 June 2011.

Technical features of Outright Monetary Transactions. ECB Press Release, 6 September 2012.

Eurozone unemployment at record high in May. CBS News. 1 July 2013. Retrieved 6 July 2013.

How Europe’s governments have Enronized their debts. Mark Brown and Alex Chambers, Euromoney. September 2005.

Paul, Belkin, Martin, A. Weiss, Rebecca, M. Nelson and Darek, E. Mix. The Eurozone crisis : overview and issues for congress. Congressional Research Service Report R42377. 29 February 2012.

Budget 2009 in figures. BBC News. 22 April 2009. Retrieved 6 January 2014.

FT: Banks ask for crisis funds for eastern Europe, 22 Jan 2009». Financial Times. Retrieved 14 October 2014.

Shambaugh, Jay C., The Euro’s three crises. Papers on Economic Activity, Spring 2012 : 157–231. Spring 2012.

Petrakis, P. E., Kostis, P. C., Valsamis, D. (2013). European economics and politics in the midst of the crisis; from the outbreak of the crisis to the fragmented European Federation. New York and Heidelberg : Springer, 274.

Opinion of the European economic and social committee on ‘The implications of the sovereign debt crisis for EU governance’ (own-initiative opinion) (2011/C 51/03). Available at :

Oakley, D., Hope, K. (18 February 2010). Gilt yields rise amid UK debt concerns. Financial Times. Retrieved 15 April 2011.

The Euro’s PIG-Headed Masters. Project Syndicate. June 2011.

How the Euro became Europe’s greatest threat. Der Spiegel. June 2011.

Long-term interest rate statistics for EU Member States. ECB. November 2012.

Structure of government debt. Available at :

National debt in EU countries in the 3rd quarter 2017 in relation to gross domestic product (GDP). Available at :



  • Поки немає зовнішніх посилань.

ISSN 1818-5754 (print), ISSN 2415-3672 (online)
Ternopil National Economic University
© "WOF", 2004-2019