Field: Finances and financial capital

Subfield: Finances

Details:

Modern economies rely on indebtedness, rather than on resource savings. At governmental level, saving is practically impossible, the states functioning more on deficit, than on surplus. A nation’s indebtedness becomes problematic when the debt stock becomes large by comparison with the dimension of the economy (increased systemic risk), but also when it does not lead to impact investing (in infrastructure, for instance). Total public debt per capita shows the effort every individual will have to make in the future, out of his wealth, to reimburse the loans. For a poor country like Romania, public debt per capita has increased alarmingly in the last years and over very short periods of time: for instance, between 2013 and 2015, public debt per capita increased by 21%, from 2.957 Euro to 3.650 Euro / per capita (compared to 1995, 65 Euro/ per capita).