THE TAX SYSTEM AND PUBLIC DEBT MANAGEMENT AT EUROPEAN LEVEL

Abstract

Public debt is a controversial and hotly debated topic, especially in recent years, given rising public debt levels for most states. The European Sovereign Debt Crisis is well known, but also the fact that many countries have exceeded the levels set by the Maastricht Treaty as acceptable. In this regard, I intend to analyze in this article the issue of public debt for a general case, but also for private countries in the EU. I will try to highlight what are the determining factors, what are the principles of the tax system that can determine a movement of public debt. It is well known that public debt management cannot be achieved without an efficient and functional tax system, and in the long run this is crucial for the sustainability of public debt. Thus, I will try to make a correlation between the two.