Debt should not stop efficient investment, on the contrary

The debate on public debt ratios in the euro zone after the coronavirus crisis has attracted much attention. It is true that in accounting terms, public debt ratio s will be higher. But: It must be remembered that a government bond that is irreversibly purchased by a central bank is effectively cancelled; In 2020, the entire increase in the public debt will be absorbed by the ECB; in 2021, the ECB may reduce its government bond purchases, but the rest of the new debt will probably be issued by Europe and not by individual countries; Above all, the accounting approach (which does not take into account the role of the ECB or mutualisation of the new debt) must not lead the euro-zone countries to reduce their public investment in order to reduce their fiscal deficit s and public debt , like they did after the subprime crisis . It is not because an economic agent is highly indebted that it should not make profitable investments , on the contrary .