REGIONAL STUDY

Public Debt in Southeast Europe

Wings of Hope Foundation, through the “CSOs as Equal Partners in Monitoring of Public Finances” initiative, brought together ten organizations from seven countries to analyze trends in public debt in Southeast Europe and examine the role of the EU and financial institutions.

Key Findings

The regional study titled “Public Debt in Southeast Europe: Why Enable Public Participation?” revealed concerning trends. The analysis showed that public debt in the examined countries rose from 25% of GDP in 2007 to 51% in 2016, which raises serious concern regarding long-term sustainability, particularly for economies with lower incomes.

Kosovo is the only country that kept its debt level below pre-crisis values, while other countries faced challenges in establishing fiscal stability.

A Call for Change

The research identified significant disagreements regarding the policies of international financial institutions and EU accession requirements that affect public finances. However, among civil society organizations, two important areas of consensus emerged:

Citizens should participate in debt audits and monitoring mechanisms, beyond traditional institutional audits.
Reform of the tax system should prioritize financing public investments in employment and growth.

Resources

The regional study and policy brief are available for download.