Ten reasons why the debt crisis is not over
This Eurodad report looks at the new debt picture in the sixth year of the global financial crisis. Debt vulnerabilities have changed, but overall they have not been substantially reduced. Unsustainable and illegitimate debt is still a risk to financial stability and, ultimately, to the economic and social fabric of our nations.
Eurodad believes the debt crisis is far from, since:
- Economic imbalances continue to boost external debt
- Capital is moving around the globe in an uncontrolled way
- Private debt is on the rise
- Sovereign debt is higher than ever in some places
- Sovereign debt is riskier than ever in some places
- The time bombs that are contingent liabilities could detonate at any time
- Tax evasion and avoidance, and aid cuts, are undermining public income
- Debt limit policies are subject to political manipulation
- Responsible financing standards are rarely followed
- Effective debt workout mechanisms do not exist