ADEQUATE INDEBTEDNESS AND TAXATION FOR SUSTAINABLE DEVELOPMENT - WAYS TO ENSURE A BETTER FUTURE IN THE EUROPEAN UNION

Abstract

The COVID-19 crisis has exposed many facets of contemporary economic problems. Budget deficits and high public indebtedness have experienced a new moment of stress through the COVID-19 crisis, emphasizing once again the failure to comply with fiscal rules and achieve the targets set by governments and by the Stability and Growth Pact. In other words, the need for the transition to the green economy and SDGs has been put on hold by the COVID-19 crisis and its effects. However, the problems but especially the solutions are interrelated. Therefore, the article summarizes the evolution of public debt and budget deficit in relation to the targets of the Maastricht Treaty, but especially whether or not it is evolving towards achieving the goals of sustainable development in the EU and the euro area, as a whole. The results highlight the recent deterioration of the situation, especially in fiscal-budgetary matters, but also the opportunity to circumscribe the budgetary fiscal parameters to achieve the goals of sustainable development

Keywords

• debt sustainability
• sustainable development
• public debt sustainability
• european union 27