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February 19, 2021 on the Website of “Nezavisimaya Gazeta” published an article by the Leading Researcher of the Center for European Studies, Doctor of Science (Economics) Marina. V. Klinova “Virus debts in the European Union: forgive must not pay. Why debt cancellation can provoke a political crisis ”.
The consequences of the COVID-19 pandemic have exacerbated the difficult situation in the economies of the EU countries, which had just begun to recover after the global financial crisis of 2008-2009 and the subsequent austerity regime. As a result, the contradictions between the north and south of Europe have intensified, and the colossal public debts in the countries of the south, formed as a result of the support of the economy and citizens during the pandemic, has increased even more…
... Investors will not be able to trust those who do not pay debt. The principle of Pacta sunt servanda applies to debt as well, and the choice is not only economic. Debt cancellation can provoke a political crisis, especially since COVID-19 has already caused a rise of populism in the European Union's member countries.
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