Computing the EU’s SURE Interest Savings with an Extended Debt Sustainability Analysis Tool

• PABLO BURRIEL ^[1] ; IVÁN KATARYNIUK ^[1] ; JAVIER J. PÉREZ ^[1]
  1. [1] Banco de España
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 245, 2023 (Ejemplar dedicado a: Special issue of the “Meeting on public economics 2022”), págs. 157-178
• Idioma: inglés
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• Resumen

  • The EU’s SURE programme provided loans to member states to fund public spending on unemployment schemes during the COVID-19 crisis. Funds were raised through securities issued on capital markets and disbursed as bilateral loans. This paper examines the interest savings from loans for Belgium, Spain, Portugal, and Italy using a Debt Sustainability Analysis tool extended to account for different types of debt. Results show signifcant interest savings under the SURE programme, with potential for even greater savings during periods of market stress.