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Assessing the Debt Sustainability Analysis Methodology in the EU’s New Economic Governance Framework

카테고리
국외자료
단체저자
European Parliament
발행기관
European Parliament
발행년월
2025.02
페이지수
36p
URL
요약
This in-depth analysis reviews the Debt Sustainability Analysis (DSA) that guides the implementation of the new Economic Governance Framework. It evaluates the adequacy of the methodology, with a focus on the changes introduced in the DSA to make it fit for the multi-annual character of the framework. While the DSA is not far from the state-of-art, the way the framework handles uncertainty is suboptimal. The study notes a few other areas where the analysis could be improved, namely potential output and structural primary balance estimation, sovereign borrowing strategies, and fiscal multipliers. The study also discusses whether the framework is sufficiently transparent, and presents venues through which the European Parliament can foster a transparent debate about the methodology underpinning the DSA exercise.