A recent CEPS study[ using the results and methodology of the Kazarian Centre for Public Financial Management estimates that the total financial and non-financial assets of governments in all EU member states in 2017 amounted to €15 trillion, while financial and non-financial liabilities amounted to €29 trillion. This means €29,600 in public assets and €58,200 in liabilities, or a negative net worth of €28,100 for each European citizen.

As a result, citizens began to experience a deterioration of public services alongside increasing taxation and a growing burden of public debt. Policymakers, journalists and even the general public started to focus on the debt dynamics in various EU countries. However, public debt is only one item on a government’s balance sheet. On its own, debt is not representative of the state of public accounts. Financial assets and liabilities, indeed, represent only 30% of public sector balance sheets