Budget indicators

The government debt ratio, as defined in the EU treaties, does not in itself allow a reliable conclusion to be drawn about the current and future macroeconomic situation of a country. For example, Portugal had a lower debt ratio than Germany until 2008; and in Spain, it was below the German comparative value for a long time. On the other hand, Ireland ran a surplus rather than a deficit for many years. However, each of the countries mentioned fell into a crisis. In each case, therefore, other characteristics must also be taken into account in assessing the crisis resistance of an economy, especially: – the degree of opening of national markets to the inside and outside world; – free access to the professions, i.e., no professional barriers to competition; – the administrative capability (effectiveness of the administration) at all levels, effectiveness of the administration) at all levels of government, i.e., well-trained civil servants willing to work instead of loyal but incompetent partisans; – the development of social partnership, including economically knowledgeable and responsible trade union officials; – international competitiveness; and – the population’s propensity to save. – See labor market flexibility, Balassa index, blackmail potential, debt brake, welfare state trap, government debt pressure, stability and growth pact, sunset proviso, sustainability of public finances, unit value ratio, constitutional article one, growth-debt fact, historical, competitiveness, competitive status, international.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/