The fight for funding deficits. About the illusion of prosperity and financial depletion of the State

From Ricardo and Smith the deficits were seen as the one of the most terrible scourges which was ever invented to afflict a nation” as a system which tends to make us less thrifty, to blind us to our real situation. In the twentieth century allowing deficits regardless of their destination opened the wrong door to excessive debt and vulnerable states to the credit markets. This paper aims at showing that currently many European Member States faced not only with high deficits and high stocks of public debt, which under normal conditions could be easier managed, but with the rejection and the lower confidence of investors and financial institution, with higher burden of interests and significant loss of growth perspective.