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2min chapter
Debt dynamics: Exploring EU borrowing in changing times
The Sound of Economics
Introduction
Of the approximately 400 billion euros in outstanding EU debt, 85 percent was issued since 2020. Large-scale borrowing is expected to continue until 2026 for remainder of next generation EU and concessional loans to support Ukraine. When these programs were launched, interest rates were their historic levels; now they are positive. The cost of borrowing for all countries and the EU is increasing. Why? In a recent paper, my colleagues have attempted to answer that question.
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