Business
CROSS-SPECTRUM
Global sovereign debt peaks while Switzerland's fiscal guard holds steady
World government debt has risen to its highest level since World War II, yet Switzerland remains insulated thanks to its debt-brake rule, though vulnerabilities persist.
The aggregate debt of sovereign states now equals almost the entire global economic output, a level not seen since the end of the Second World War. France is currently paying interest rates that exceed those of Greece and is breaching the European Union’s deficit limits. In contrast, Switzerland’s constitutional debt-brake keeps its public finances stable, but the country is not completely immune to external fiscal shocks.
Why it matters
Rising global debt threatens economic stability, and Switzerland's unique fiscal rules offer a rare buffer worth watching.
In this story
sovereign debtdebt brakeglobal debt levelEU deficit ruleseconomic stability
