The EU Public Debt Synchronization: A Complex Networks Approach

This study examines the evolution of public debt among the 27 EU member states using Graph Theory tools; the Threshold Weighted–Minimum Dominating Set (TW–MDS) and the k-core decomposition method, alongside a standard network quantitative metric, the density. By separating the data into three distin...

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Main Authors: Fotios Gkatzoglou, Emmanouil Sofianos, Amélie Barbier-Gauchard
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Economies
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Online Access:https://www.mdpi.com/2227-7099/13/7/186
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author Fotios Gkatzoglou
Emmanouil Sofianos
Amélie Barbier-Gauchard
author_facet Fotios Gkatzoglou
Emmanouil Sofianos
Amélie Barbier-Gauchard
author_sort Fotios Gkatzoglou
collection DOAJ
description This study examines the evolution of public debt among the 27 EU member states using Graph Theory tools; the Threshold Weighted–Minimum Dominating Set (TW–MDS) and the k-core decomposition method, alongside a standard network quantitative metric, the density. By separating the data into three distinct periods, pre-crisis (2000–2007), European sovereign debt crisis (2008–2015), and post-crisis (2016–2023), we examine the potential synchronization of the debt ratios among EU countries through cross-correlations of the public debts. The findings reveal that public debt correlation was at its highest level during the 2008–2015 period, reflecting the universal impact of the crisis and the subsequent synchronized fiscal and monetary policy measures taken within EU. A significantly lower network density is observed in both the pre- and post-crisis periods. These results contribute to the overall debate on fiscal stability and policy coordination by showing how EU countries tend to align their fiscal behaviors during periods of crisis while behaving more independently during stable times. In addition, we yield a deeper insight into how economic shocks reorganize public debt interconnections within the crisis period. Finally, this analysis highlights to what extent European economic integration strengthens connections between the fiscal positions (through public debt) of the European Union member countries.
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spelling doaj-art-e8bb9478453c424bb3a73775a87f10e12025-08-20T02:45:55ZengMDPI AGEconomies2227-70992025-06-0113718610.3390/economies13070186The EU Public Debt Synchronization: A Complex Networks ApproachFotios Gkatzoglou0Emmanouil Sofianos1Amélie Barbier-Gauchard2Department of Economics, Democritus University of Thrace, 69100 Komotini, GreeceBureau d’Economie Théorique et Appliquée (ΒΕΤA), University of Strasbourg, 67000 Strasbourg, FranceBureau d’Economie Théorique et Appliquée (ΒΕΤA), University of Strasbourg, 67000 Strasbourg, FranceThis study examines the evolution of public debt among the 27 EU member states using Graph Theory tools; the Threshold Weighted–Minimum Dominating Set (TW–MDS) and the k-core decomposition method, alongside a standard network quantitative metric, the density. By separating the data into three distinct periods, pre-crisis (2000–2007), European sovereign debt crisis (2008–2015), and post-crisis (2016–2023), we examine the potential synchronization of the debt ratios among EU countries through cross-correlations of the public debts. The findings reveal that public debt correlation was at its highest level during the 2008–2015 period, reflecting the universal impact of the crisis and the subsequent synchronized fiscal and monetary policy measures taken within EU. A significantly lower network density is observed in both the pre- and post-crisis periods. These results contribute to the overall debate on fiscal stability and policy coordination by showing how EU countries tend to align their fiscal behaviors during periods of crisis while behaving more independently during stable times. In addition, we yield a deeper insight into how economic shocks reorganize public debt interconnections within the crisis period. Finally, this analysis highlights to what extent European economic integration strengthens connections between the fiscal positions (through public debt) of the European Union member countries.https://www.mdpi.com/2227-7099/13/7/186public debtEuropean integrationcomplex networkscorrelationsynchronizationgraph theory
spellingShingle Fotios Gkatzoglou
Emmanouil Sofianos
Amélie Barbier-Gauchard
The EU Public Debt Synchronization: A Complex Networks Approach
Economies
public debt
European integration
complex networks
correlation
synchronization
graph theory
title The EU Public Debt Synchronization: A Complex Networks Approach
title_full The EU Public Debt Synchronization: A Complex Networks Approach
title_fullStr The EU Public Debt Synchronization: A Complex Networks Approach
title_full_unstemmed The EU Public Debt Synchronization: A Complex Networks Approach
title_short The EU Public Debt Synchronization: A Complex Networks Approach
title_sort eu public debt synchronization a complex networks approach
topic public debt
European integration
complex networks
correlation
synchronization
graph theory
url https://www.mdpi.com/2227-7099/13/7/186
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