ABSTRACT

Background

Public debt levels in the United Kingdom and the European Union have increased significantly after the 2008 global financial crisis and the COVID-19 pandemic, raising concerns about fiscal sustainability and long-term economic growth. Managing high debt while sustaining economic recovery has become a central policy challenge.

Objective

This study aims to evaluate the effectiveness of existing debt reduction strategies and develop a comprehensive policy reform framework capable of reducing public debt by 50% over a ten-year period across selected European economies.

Methods

A mixed-methods approach is employed, combining quantitative analysis of macroeconomic indicators (debt-to-GDP ratios, fiscal deficits, growth rates, and interest rates) with qualitative insights from surveys and semi-structured stakeholder interviews. The study covers major European economies: the UK, Germany, France, Italy, and Belgium.

Results

Findings indicate that debt levels remain structurally high despite post-pandemic stabilization. Key barriers to debt reduction include rising interest rates, persistent fiscal deficits, low economic growth, political resistance to austerity, and institutional constraints such as EU fiscal rules. Evidence suggests that traditional austerity measures alone are insufficient and may hinder growth.

Discussion

The results highlight the need for a balanced approach that integrates fiscal discipline with growth-enhancing policies. Institutional flexibility, political feasibility, and structural reforms particularly in productivity, labor markets, and public sector efficiency are critical for achieving sustainable debt reduction.

Conclusion

The study proposes a phased policy roadmap combining gradual fiscal consolidation, structural reforms, and institutional strengthening. A hybrid strategy that aligns economic efficiency with political and social feasibility is essential for achieving long-term fiscal sustainability and economic resilience in the UK and EU.

Research paper is currently in review process and will be uploaded in coming days.

License

Copyright (c) 2026 SRJ Research Team (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License