The Covid-19 Pandemic Global Risks and Uncertainties
Public Debt in Covid-19 Pandemic Crisis in Europe and The Toxic Legacy of the European Debt CrisisBinhan Elif Yılmaz
Economic crises and pandemics began to appear more frequently and more violently with the mobility of people and capital brought about by globalization. All these crises have caused financial, economic and social imbalances in many countries. The most important ones of the crises we have witnessed in recent years are the 2008 global crisis and the 2020 COVID-19 pandemic crisis. The European Union member states stand out both through the channels affected by these crises and through their own unique solutions within the Union. However, most of the Union’s member states are moving from the global crisis to the present to a highly indebted future. PIIGS (Portugal, Ireland, Italy, Greece, Spain) countries are the most important actors in the transformation of the global crisis into a debt crisis, especially in Europe. The monetary and fiscal policy measures taken by these countries did not reduce the debt stock, nor did they lose momentum in the growth rate. These economies have been heavily affected by the COVID-19 pandemic crisis, which has spread to all countries of the world since the early days of 2020, and have been caught up in the pandemic crisis by the high public debt of the global crisis and its toxic legacy. They continue to face economic shocks due to quarantine practices and travel restrictions taken to prevent the spread of the pandemic. This study aims to reveal how the toxic legacy of Europe’s debt crisis that emerged after the global crisis and is still in, can lead the financing need to be created by the COVID-19 pandemic to a stalemate and which in such an environment, new borrowings can be a source of instability and danger, and to evaluate this debt crisis together with the measures taken against the crises.