Alternative Views on the Debt Financing of Public Sector in the EU

Fiscal imbalances and debt financing in the public sector is now considered to be a normal state. However, the growing indebtedness of governments, as shows the example of Greece, generates the growing problems and economic instability, not only in given country but also internationally. The paper deals with the causes and consequences of long-term fiscal imbalances and growing government debt in selected countries of the European Union, and particularly the euro area. The focus of this paper is discussion about the alternative views to the debt financing of public budgets given the current situation in the euro area countries and the tendency to suspend fundamental systemic solution of the debt problem.