A Cluster Analysis of Public Debt Management Efficiency and Fiscal Modernization in the European Union
A Cluster Analysis of Public Debt Management Efficiency and Fiscal Modernization in the European Union

Summary/Abstract: This study evaluates the efficiency of public debt management across European Union (EU) member states within the broader framework of public finance modernisation. As the Eurozone navigates post-pandemic recovery and shifting monetary policies, the ability of states to optimise debt structures has become a critical determinant of macroeconomic stability. Utilizing a multidimensional cluster analysis, the research categorizes EU countries based on debt-to-GDP ratios, servicing costs, and institutional fiscal strength. The findings identify three distinct archetypes: "Fiscal Anchors" with high management efficiency, "Modernizing Transnationals" with moderate leverage, and "Vulnerable Peripheral" economies facing structural debt pressures. The research demonstrates that modernizing public finance institutions is positively correlated with lower debt-servicing burdens and enhanced market credibility. The study concludes with policy recommendations for harmonising debt management strategies across the EU to ensure long-term fiscal sustainability and economic resilience.

• Details
• Contents