op_schauble6_YANNSCHREIBERAFPviaGettyImages_ecbcovid Yann Schreiber/AFP via Getty Images

Are We Risking a Debt Pandemic?

The prospect of recovery from the COVID-19 crisis makes it all the more urgent to have a firm vision of how the burden of public debt can be reduced once the coronavirus has been vanquished. For this reason, every country must work on itself and strive to maintain budgetary discipline.

BERLIN – October 12, 2020, will go down in German financial history. For the first time, new public debt increased at a rate of more than €10,000 ($11,900) per second, faster than during the 2007-09 global financial crisis, when a huge volume of net borrowing was needed. This headlong acceleration of debt, in Germany and in countries around the world, is the price being paid to stave off the economic consequences of COVID-19.