Debt ratio, government (macro-economic debt ratio, debt-to-GDP ratio)

One of the convergence characteristics defined in Article 104 (2) of the TEC. The debt ratio is defined as “the ratio of government debt to gross domestic product at market prices.” More detailed definitions are set out in Protocol № 20 “Excessive Deficit Procedure” of the TEC. – In the summer of 2009, the EU decided to exclude from government debt the special purpose vehicles set up to bail out banks on occasion of the financial crisis, which was probably rightly criticized as a “fatally flawed decision.” – In 2007, Germany had a debt ratio of 65 percent; by the end of 2011, this had risen to 84 percent. The main reason for this increase was payments in connection with the bank rescue law. – See spending ratio, public, bank bailout, reverse, deficit-debt-adjustment, deficit ratio, third-gate money, fiscal policy, fiscal referendum, budget deficit, budget ratios, default, Methuselah syndrome, sustainability, net creditor, Rogoff study, debt, floating, debt brake, debt-debt-
Prescription, debt sustainability, Semester, European, welfare state trap, sovereign debt reduction, sovereign debt pressure, Stability and Growth Pact, sunset proviso, fiscal sustainability, constitutional article one, treaty compliance,
On the excessive deficit procedure, see also the ECB’s Monthly Report of June 2003, pp. 64 f., p. 67; Monthly Report of the Deutsche Bundesbank of April 2005, pp. 15 ff. (completely changed situation after the “reform” of the Stability and Growth Pact) and pp. 23 ff. (detailed explanations of the stability “culture”), Monthly Report of the ECB of October 2006, p. 58 (projection up to 2050, also broken down by individual expenditure groups and countries), Monthly Report of the Deutsche Bundesbank of May 2009, p. 25 (contingent liabilities would have to be included in government debt), ECB Monthly Report of March 2010, p. 95 (fiscal policy considerations: four serious consequences of high debt ratios), Deutsche Bundesbank Monthly Report of April 2011, p. 53 ff (measures to prevent rising debt ratios), ECB Annual Report 2010, p. 83 ff (costs and benefits of fiscal consolidation; references), ECB Monthly Report of April 2011, pp. 63 ff (detailed discussion; many overviews; important source references in the notes), Deutsche Bundesbank Monthly Report of May 2011, pp. 22 ff (debt ratio of euro area members since 2009), Deutsche Bundesbank Monthly Report of May 2012, pp. 60 ff (debt ratio continued to rise; overviews), ECB Monthly Report of March 2013, pp. 92 ff. (growth inhibition of high government debt; overviews; references), ECB Monthly Report of May 2013, pp. 93 ff (in-depth analysis of the debt levels of euro area members; overviews; references), Deutsche Bundesbank Monthly Report of May 2013, pp. 62 ff (debt ratio in EMU rising; overview), Deutsche Bundesbank Monthly Report of January 2014, pp. 41 ff (detailed, in-depth discussion of the situation in EMU).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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