European countries sinking in debt - European leaders call urgent meeting to discuss spending policy

Brussels: Covid pandemic and the conflict in Ukraine has severely impacted the economy of European countries. According to a US agency, countries like Romania, Poland and Hungary are sinking in debt as their market borrowing has increased thrice. Concerned about the financial crisis, the European Union has called for an emergency meeting to review the spending guidelines set in the 1990s.

A list of emerging market creditor countries was recently released. In this, fuel-rich Saudi Arabia is at the forefront. It is reported that Eastern European countries have also borrowed 32 billion dollars this year. The top five countries in this list include Poland, Romania and Hungary in Eastern Europe. Poland, second only to Saudi Arabia in the list of emerging market borrowers, borrowed $9 billion. Romania is in fourth place with a loan of 6 billion dollars, and Hungary is in the 5th position with a loan of 5 billion dollars.

The economic policies of the federation and the spending pattern have been criticised for the debt situation. European countries had to announce concessions and subsidies to counter the soaring inflated fuel prices triggered by the conflict. Furthermore, the influx of refugees due to conflict adds to the cost and builds up the military power.

European countries will be required to pay the loan back with an interest of 4-5%, which is a serious challenge in the future. Apart from Poland, Romania and Hungary, other European countries face similar economic crises. To overcome this, European Union officials have called an urgent meeting to review the spending policies made in the 1990s.

हिंदी मराठी