ECB’s Stournaras: Europe at Crossroads in Terms of Debt Sustainability

7 November 2024

By David Barwick – ATHENS (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Thursday urged that Europe address the problem of high debt.

In remarks to open a conference of the Bank of Greece, which he heads, Stournaras said that Europe was ‘at a crossroads, grappling with debt burdens that have grown due to a series of recent crises’.

Ensuring debt sustainability was yet more difficult due to features of Europe such as the absence of a central fiscal authority, he said.

‘The challenges we face today – ranging from high debt levels to climate crisis, geopolitical risks posed by conflicts, geoeconomic fragmentation, demographic shifts, low productivity and deglobalisation trends – require us to remain vigilant and adaptive’, he said.

‘Should we confront rising debt vulnerabilities, the need for innovative and sustainable fiscal solutions will be more urgent than ever’, he said.

Future financial stability and the welfare of coming generations depended on the decisions made now, he said.

‘Striking the right balance between fostering growth, ensuring fiscal sustainability and protecting the long-term interests of our societies is no easy task, but it is one we must face together’, he said.