Sovereign Borrowing Outlook 2022 and Beyond: Navigating shocks and uncertainty with high debt

Covid has left deep scars in public finances. The incipient recovery is dampened by the war in Ukraine and Western sanctions. Higher inflation does not automatically lower debt ratios to the extent that it stems from foreign cost-push sources and prompts central banks to tighten policy. NGEU has entered the European sovereign debt scene with considerable issuing volumes. Government measures to dampen the energy price shock, to speed up the energy transition and to beef up defense spending add to governments’ borrowing needs. Against this background, this workshop presents key findings from the OECD’s “Sovereign Borrowing Outlook 2022”. Top experts from EU institutions, sovereign debt managers and the financial sector discuss scenarios and challenges potentially lying ahead.