Financial Sustainability in the European Union: Public Debt and Deficit Dynamics in EU Member States

Summary This study analyses the evolution of public debt and budget deficits and the evolution of health spending in the 27 Member States of the European Union between 2018 and 2023, examining their policies during this period and the effects caused by European rules on deficit and public debt limits for member states. We aim to characterize the behaviour of Eurozone Member States and non-Eurozone Member States, conducting a comparative analysis of these two groups. The data collected from Eurostat databases leads us to conclude that fiscal consolidation and long-term sustainability are fundamental principles incorporated into the national finance management of both groups of states. The freedom of action for both groups of Member States did not result in the abandonment of these rules nor in an apparent disregard for the adverse effects that high levels of deficit and debt have on the resilience of European Union Member States in the face of future crises.