Due to the Sars-Cov-2 pandemic, the levels of government debt have increased worldwide. In order to avoid an economic collapse, the international actors have deployed extraordinary measures. The European Union loosened the Stability and Growth Pact fiscal rules, while the G20 promoted the Debt Service Suspension Initative (DSSI), to reduce the pressure on the developing countries.
Given the uncertainties due to the unpredictability of the pandemic, these measures are likely to last. Nonetheless, it is necessary to draft a strategy to tackle the moment in which the ordinary fiscal imperatives will be reestablished. How to bring together the rise of public expenditure with the debt sustainability? Which scenarios for the post-pandemic period, when the extraordinary measures will be lifted, are to be expected? How significant is the risk that a financial crisis will follow the economic one?
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