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Archive » January 2026 » Debt sustainability in the Global governance crisis

Debt sustainability in the Global governance crisis

Pier Carlo Padoan
January 2026 - n. 1
Keywords: Crisi, debito, economia globale
Jel codes: H12, G01, E42, F01

As a result of the climate, technological, industrial, energy and war crises, the global system is going through a phase of fragmentation that compresses productivity and growth. Each of these crises requires huge investments to support the processes of reallocation of capital in its various forms: technological, human, physical and intangible. The result is a huge debt, which leads to a crucial question for Europe: will this debt be sustainable? The answer depends on Europe's ability to strengthen the institutional debt management structure, based on four pillars, Ngeu, Safe Assets, European Public Goods, Savings and Investment Union, which in their interaction strengthen the conditions of stability through a boost to income growth and a fall in the interest rate.

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