In the context of the current gradual economic recovery, the over-indebtedness of households in the EU is tending to slightly decrease. Nevertheless, the levels remain relatively high, especially in peripheral economies of the euro area, which might result in some persistent impediments to future economic growth. In addition, beyond the typical economic impact, persistent financial difficulties are also likely to have social consequences, notably by heightening social stratification. Regulators, lenders and consumers need therefore to continue to commit themselves to the task of overcoming the problem of over-indebtedness. This would require the adoption of converging definitions across the EU28 and innovative tools to prevent and tackle over-indebtedness, as well as further emphasis on a “shared responsibility” to explain and curb the phenomenon.
Against this background, CEPS is organising the conference on “Over-Indebtedness of European households: Myths and realities”, with three main objectives:
-to understand the main drivers behind over-indebtedness,
-to highlight the main effects on borrowers and lenders and
-to analyse innovative tools to tackle and/or prevent over-indebtedness.