Public Debt, Democracy and Transition

Remarkable changes in international relations are occurring before our eyes, transforming the situation from old forms, which were based on wars to new ones, based on softer approaches. In this scenario financial aspects play an important role. A general shift to forms of democratic governance was experienced in many countries, which may also bring to an increase of household deficits and debt formation, like observed in the case of states, which transited from communism to capitalism. The participation to an economic grouping, like the EUROZONE, compels the member states to keep under control such economic variables. Problems show up if the economic performances of the member states diverge strongly. It is to highlight also, that the variables used to describe economic and fiscal phenomena are not measures like exact science would request, but rather less precise tags, depending heavily also on decisions of the given state politicians, which can change them to their advantage in the perspective of being elected. A comparison between states is carried out and it is shown, that sometimes, if the politicians in power are not able to keep such variables under control, the managing teams must be changed and sometimes even democratic rule altogether has to be discontinued, in order to save difficult situations.