The question of public debt hangs over Europe’s future. Brussels prefers to talk about other things—the Green Deal or social Europe. The European public is more urgently interested in vaccines, lockdowns and immigration. But nothing is closer to the heart of power in the European Union than public debt.

To even mention it brings back painful memories of the eurozone crisis. After the shock of 2020, the debts are even bigger. And, like it or not, the debate is beginning again. More than any other issue it will decide the future of Europe.

The Stability and Growth Pact has undergone many stages of evolution since the Maastricht treaty was signed in 1992, but two fixed points remain. The ratio of public debt to gross domestic product of EU member states should not exceed 60 per cent and annual budget deficits should not exceed 3 per cent. Those who do not meet these criteria are expected to take measures to ensure compliance.

Read the full article at Social Europe.