As US debt rises, Europe controls its own
As US debt rises, Europe controls its own
Updated October 22, 2023 at 12:09 a.m. ET
Throughout the Covid-19 pandemic and then Russia’s invasion of Ukraine, the United States and Europe borrowed heavily. Now that these emergencies are behind us, a divergence has emerged: even if the United States continues to allow its deficits to widen, Europe’s is on the verge of reducing considerably.
This contrasts with what was happening a decade ago, when deficits following the global financial crisis pushed some eurozone members to the brink of default. The lessons of this episode, combined with Eurozone rules, have served to impose on European governments a discipline that, for now, is completely absent in the United States.
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