engleski

The economic and social consequences of personal over-indebtedness in European Union

Although there is no common definition of personal over-indebtedness in the EU, there is almost a unanimous consent that it can cause serious economic and social consequences. Due to the economic crisis, the COVID-19 pandemics and significant price growth, the number of over- indebted persons in the EU has increased. Possible adverse consequences are primarily related to reduced opportunities for education, limited access to the labour market and therefore increased exposure to poverty and social exclusion. All mentioned factors endanger population health, increase healthcare expenditures and cause various other costs, like judiciary expenditures, a growth in outlays for social welfare policies and other. On the level of the whole society and economy, a justified economic and political concern is that over- indebted households will eventually not be able to repay their debts, which may cause a domino effect and cause a financial crisis and macroeconomic shock, like rising interest rates, declining employment and/or increasing poverty. The aim of this contribution is to analyse the situation with over-indebtedness in the EU with the particular attention to find out the causes and costs of personal over-indebtedness.

personal over-indebtedness ; European Union ; social exclusion ; vulnerability ; the consequences of the economic crisis ; the COVID-19 pandemic

nije evidentirano